Litecoin ETF: Canary Capital Set LTC Price Running With New Filing

Canary Capital has filed an application for the first Litecoin ETF product in the US, a development that has set the price price soaring

Canary Capital, an asset management firm, has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a Litecoin ETF. This move signals a strategic push by the crypto investment firm to broaden institutional access to leading digital assets.

The filing has fueled a new rally in the price of LTC. The coin is now changing hands for 4% in 24 hours to $69.1.

A New Era for LTC: The Canary Litecoin ETF

The company submitted the S-1 registration on Tuesday for the Canary Litecoin ETF.  

According to the filing, the fund aims to provide exposure to the price of LTC held by the Trust. While a custodian and administrator for the fund were not disclosed, the filing itself has already garnered significant attention from investors and analysts alike.

Introducing an LTC ETF underscores the growing recognition of Litecoin’s place in the broader cryptocurrency ecosystem. Since its inception, the altcoin has gained a reputation for its speed, security, and 100% uptime. Interestingly, the coin is often viewed as a reliable alternative to Bitcoin.

Earlier this year, the digital asset secured the top position for crypto payments in 2024, outshining Bitcoin, Ethereum, and Dogecoin. 

Market participants are still debating over the regulatory future of a Litecoin ETF. James Seyffart, an ETF Analyst at Bloomberg, pointed out that Litecoin’s regulatory classification could follow a similar trajectory to Bitcoin. 

Seyffart stated that the SEC might approve the Litecoin ETF since Litecoin is a fork of Bitcoin. The agency approved the spot Bitcoin ETF offering in January. 

Despite this optimism, Seyffart noted a key hurdle. He said that for the SEC to approve an ETF, there needs to be a sizable and liquid futures market that is federally regulated in the U.S. Unfortunately, Litecoin has yet to meet that requirement. 

The XRP Factor: More Crypto ETFs Coming Soon

This application reflects a similar move made by Canary Capital earlier this month when it applied for an XRP ETF after Bitwise. 

While the SEC has not yet approved a spot XRP ETF, this filing is another step towards legitimizing more cryptocurrencies for institutional investors. 

However, the XRP ETF filing might encounter more obstacles due to the legal dispute between Ripple Labs and the SEC.

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