The Nasdaq filed form 19b-4 to begin trading a Litecoin ETF from Canary Capital today. This comes only a few hours after Canary amended its form S-1, suggesting productive SEC feedback.
Multiple analysts have suggested that the SEC will soon approve this fund, making it the first altcoin ETF of 2025.
Canary Capital’s Litecoin ETF
It seems like the road to a Litecoin ETF is almost over. Earlier today, Canary Capital filed an amendment to its S-1 registration form with the SEC, signaling a possible approval and generating bullish whale activity.
ETF analyst Nate Geraci noted later that the Nasdaq also filed a form 19b-4, requesting SEC permission to trade Canary’s Litecoin ETF.
“Litecoin ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given [that the] SEC gave comments on the S-1, Litecoin is seen as commodity, and there’s new SEC sheriff in town,” added Eric Balchunas, a fellow ETF analyst.
If Canary Capital’s Litecoin ETF wins SEC approval, it could have a notable impact on the asset’s price. Recently, Litecoin suffered significant bearish pressures, including the lowest number of daily active addresses since 2023.
However, this ETF buzz has quickly generated a huge amount of hype, which could possibly stir up new momentum.
However, a Litecoin ETF might not have as much engagement as other altcoin ETFs. Over the years, the protocol has seen less development compared to other networks. Also, LTC’s growth has been stagnant even in the bull market.
Yet a Litecoin ETF is more likely because there are fewer hurdles for the SEC to approve this fund. For instance, Litecoin is already considered a commodity by the regulator. So, there is no lingering debate about whether the asset should be treated as a security.
Canary Capital has actively pursued a Litecoin ETF for several months now. The firm filed SEC applications for several cryptoasset ETFs, from common candidates like Solana to unorthodox ones such as Hedera. Interestingly, Canary is currently the only issuer seeking an LTC-based product, giving it a clear advantage in this market.
If the SEC does finally approve a Litecoin ETF, Canary Capital would have a huge business opportunity. The firm would enjoy a first-mover advantage, immediately trading its product while other potential issuers scramble to get theirs online.
This wouldn’t guarantee long-term success, as Grayscale significantly underperformed compared to BlackRock despite offering the first Bitcoin ETF.
Still, these rumors have already yielded significant price jumps and whale interest. Canary, in short, could win big here. It only needs a few more steps from the SEC to kick off a new market. If approved, LTC would become the third cryptocurrency in the market to have an ETF in the US market.
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