Canary Capital Pursues SEC Approval for Spot Litecoin ETF
Canary Capital's Registration Statement
Canary Capital filed a registration statement with the U.S. Securities and Exchange Commission for a Litecoin exchange-traded fund, just days after submitting a similar request for an XRP product. The crypto investment firm submitted an S-1 registration statement on Tuesday for the Canary Litecoin ETF. This fund aims to provide exposure to the price of LTC held by the Trust, according to the official filing.
Significance of the Litecoin ETF
Founded by Steven McClurg, who previously established Valkyrie Funds with other spot crypto ETFs, Canary Capital posits that Litecoin plays a leading role in the broader cryptocurrency ecosystem, thereby appealing to a wider range of institutional investors. “Canary believes that Litecoin presents a unique opportunity for investors seeking exposure to a time-tested and reliable cryptocurrency,” the firm indicated in an email statement. The firm underscored Litecoin's impressive track record with 100% uptime since its inception, highlighting its established security and utility.
Market Conditions and Regulatory Landscape
According to Bloomberg ETF analyst James Seyffart, some exchange-traded products currently hold Litecoin, including one from CoinShares in Switzerland and a Grayscale trust in the U.S. Seyffart stated that Litecoin might share a similar regulatory status as Bitcoin since it is a fork. Nevertheless, he emphasized the necessity for a federally regulated futures market in the US for ETF approval, which Litecoin currently lacks.
The current political landscape could also impact this process. Seyffart suggested that a potential victory for former President Donald Trump, known for his favorable views on cryptocurrency, could lead to changes in the SEC's approach. He noted that to initiate the SEC’s response process, a 19b-4 filing is required, which has not yet occurred.
Notably, Canary Capital is also vying for approval of a spot XRP ETF, following Bitwise’s similar application. However, challenges remain, especially in light of the SEC’s ongoing legal dispute with Ripple over XRP's classification.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.