Canary Capital has amended its spot Litecoin ETF application with the US SEC, raising optimism for approval soon
Senior Bloomberg ETF analyst Eric Balchunas says Litecoin (LTC) Exchange Traded Fund (ETF) may get approval next. After Canary Capital submitted an amended S-1 form for its Litecoin ETF, he shared this opinion on X.
Crypto Market Looks Forward to 19b-4 Filing For Litecoin ETF
An S-1 registration is required for new securities filed to the United States Securities and Exchange Commission (SEC). Balchunas noted that there has been some chatter about the agency commenting on Canary Capital’s Litecoin ETF filing. On X, he stated this “bodes well for our prediction that Litecoin is most likely to be the next coin approved.”
We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that’s a huge variable. https://t.co/cKFswPwcr0
— Eric Balchunas (@EricBalchunas) January 15, 2025
Even James Seyffart, another top ETF analyst, noted that the investment asset manager’s move to file an amended S-1 registration form suggests engagement with the SEC.
Moreover, he mentioned that a 19b-4 filing would signify an LTC ETF approval looming. The 19b-4 filing is an application for a proposed rule change by a self-regulatory organization like the New York Stock Exchange.
While the industry is optimistic about this possibility, there is a “huge variable.” This has to do with the appointment of a new SEC Chair, which will happen on January 20. Donald Trump has already selected Paul Atkins, a former SEC Commissioner, to head the agency. The cryptocurrency sector is still waiting for the Senate to confirm the nomination.
Canary Capital Files First Litecoin ETF in the US
Canary Capital submitted the first application for Litecoin ETF in the US in October 2024. At the time, a custodian and administrator for the fund were not disclosed.
Noteworthy, the fund seeks to provide exposure to the price of LTC held by the Trust. In no distant time, the filing garnered significant attention from investors and analysts alike and even caused the price of LTC to rally.
Two weeks after this, the asset manager filed for a Solana ETF. Meanwhile, market observers are trying to understand the prospects of a Litecoin ETF. Seyffart stated that Litecoin’s regulatory classification could follow a similar trajectory to Bitcoin. In other words, the SEC might approve the product since Litecoin is a fork of Bitcoin.
The news of the amendment pushed LTC price up 16.81% in 24 hours to $119.67.
