Canary Capital has filed an amended S-1 registration form for its proposed Litecoin exchange-traded fund (ETF). This move has fueled speculation that Litecoin may be the next cryptocurrency to gain ETF approval in the United States. The amendment updates agreements with custodians Coinbase Custody Trust and BitGo, as well as provisions related to accounting, marketing, and tax matters.
Bloomberg analyst James Seyffart shared this news of Litecoin ETF filing on X.The initial S-1 filing was submitted in October 2024, but the updated version suggests the U.S. Securities and Exchange Commission (SEC) may have provided feedback. Bloomberg Senior ETF Analyst Eric Balchunas said this filing “bodes well” for predictions that Litecoin is the next cryptocurrency ETF to be approved.
SEC Leadership Change Could Speed Up The Approval Process
Gary Gensler, the current SEC chair, will leave his position on Jan. 20. Paul Atkins, a former SEC commissioner with a reputation for supporting cryptocurrency, has been nominated to take over. Analysts believe Atkins could create a more favorable regulatory environment for crypto. However, the Senate has not yet confirmed his appointment, leaving uncertainty about when his leadership will begin.
Balchunas noted that the leadership transition is a “huge variable” in the approval process for the Litecoin ETF. Another Bloomberg analyst, James Seyffart, added that a 19b-4 filing—a formal request to initiate the approval process—has not yet been submitted by Canary Capital.
Following Canary Capital’s amended filing, Litecoin’s price surged by over 15% between January 15-16, outperforming all other major cryptocurrencies with market caps above $8 billion.
Litecoin price rose by 17% in the last 24 hours with over 9B market cap.. Source: CoinMarketCapBlockchain analytics firm Santiment attributed the price increase to large investors, or “whales,” purchasing approximately 250,000 Litecoin worth $29 million since Jan. 9
whales purchased approx. 250k Litecoin worth $29 million since Jan. 9. Source: SantimentLTC ETF Faces Stiff Competition from Solana and XRP ETFs
Litecoin is not the only cryptocurrency vying for ETF approval. Applications for spot Solana ETFs, submitted by firms like Bitwise, VanEck, and 21Shares, are already further along in the regulatory process. These firms submitted 19b-4 filings in November 2024. XRP is also in contention as Ripple’s President Monica Long expects XRP ETF to be the next after Bitcoin and Ethereum. Some analysts are also predicting significant investment inflows if its ETF gains approval.
A recent report from JPMorgan estimated that spot Solana and XRP ETFs could attract $13.6 billion in net investments within their first year of operation.
Litecoin, launched in 2011, has maintained 100% uptime since its inception. Known for its reliability and security, it has positioned itself as a faster alternative to Bitcoin. Canary Capital emphasized these features as part of its case for the ETF. If approved, Litecoin would become the third cryptocurrency to receive ETF status in the U.S., following Bitcoin and Ethereum.
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