The Securities and Exchange Commission is considering a proposal by The Nasdaq Stock Market LLC to list and trade shares of the CoinShares XRP ETF under Nasdaq Rule 5711(d). This proposed rule change would allow the exchange to offer a new exchange-traded fund (ETF) that is designed to track the performance of the digital asset XRP. The ETF aims to provide investors an easy and cost-effective way to gain exposure to XRP without directly investing in the cryptocurrency itself. The SEC is seeking public comments on whether this proposal aligns with the rules and regulations set out by the Securities Exchange Act of 1934.
Simple Explanation
The SEC is thinking about letting Nasdaq sell a new type of investment, called an ETF, that helps people invest in a digital coin called XRP without buying the coin directly. They're asking people if they think it's a good idea and if it follows the rules.