Canary Capital’s recent amendment to its S-1 filing for a Litecoin exchange-traded fund (ETF) has reignited discussions about the altcoin’s potential approval as the next cryptocurrency ETF in the United States.
If approved, Litecoin could join Bitcoin and Ether as the few digital assets given the green light for ETFs in the country.
Is an Approval Coming Soon?
The amended filing, submitted on January 15, follows Canary’s initial S-1 filing with the U.S. SEC in October 2024. Analysts believe the move reflects progress in the application process and a response to feedback from the securities regulator.
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Bloomberg ETF analyst Eric Balchunas noted the development aligns with growing industry speculation that Litecoin ETFs are under review by the SEC.
“This bodes well for our prediction that Litecoin is most likely to be the next coin approved,” Balchunas stated on social media platform X.
However, he also highlighted the uncertainty surrounding a potential leadership change at the SEC, which could significantly impact the decision-making process.
What does the Amended Filing include?
Canary Capital’s amended S-1 filing designates U.S. Bancorp Fund Services as the administrator for the proposed Litecoin ETF.
The filing also reveals that Coinbase Custody Trust and BitGo will serve as custodians, responsible for securely holding the ETF’s Litecoin reserves.
Litecoin, launched in 2011 as a faster and more lightweight alternative to Bitcoin, has established itself as one of the most reliable and secure blockchain networks.
Canary Capital underscored this in its October statement, citing the blockchain’s 100% uptime since inception and its enterprise-grade use cases as factors bolstering its credibility.
Challenges and Next Steps
While the amended filing is a positive step, further regulatory hurdles remain. Bloomberg ETF analyst James Seyffart explained that Canary Capital’s S-1 must be accompanied by a 19b-4 filing to formally initiate the SEC’s approval or denial process. Without this filing, the timeline for any potential decision remains unclear.
Analysts are optimistic but cautious. The SEC has been historically stringent with cryptocurrency-related ETFs, approving only a limited number of Bitcoin and Ether ETFs in 2024 after years of deliberation.
A decision on Litecoin’s ETF will likely depend on how the SEC evaluates its regulatory framework, market maturity, and the custodial arrangements proposed by Canary Capital.
Litecoin’s Price Actions
At the time of writing, Litecoin ranks as the 20th largest cryptocurrency, with a market capitalization of $9.03 billion. The token has seen a recent surge, climbing 16.79% in the past 24 hours to trade at $119.77.
Its steady performance and reputation as a secure and reliable network may benefit it as the SEC evaluates its ETF application. If approved, the Litecoin ETF could expand the range of cryptocurrency investment options available to institutional and retail investors.
It would also signal the SEC’s growing acceptance of digital assets beyond Bitcoin and Ether, potentially paving the way for other altcoins to receive similar treatment.
Also Read: Litecoin Tops Transaction Usage Again, Surpassing Bitcoin