Canary Capital Eyes SEC Approval for Spot Litecoin ETF

Asset management firm Canary Capital has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to introduce the first spot Litecoin ETF in the United States. 

As per the statement, the firm announced this development on Tuesday, highlighting Litecoin’s potential as a “unique and compelling investment opportunity.”

Following the announcement of the ETF filing, Litecoin (LTC) saw a positive price reaction, rising over 3% to $69.16, with a brief spike above the $70 mark.

Canary Capital emphasized that Litecoin boasts a remarkable track record, maintaining 100% uptime since its inception, which they believe positions it well for institutional investors seeking exposure to cryptocurrency.

Canary Capital claims that Litecoin has emerged as a leader in real-world payments due to its collaboration with BitPay, one of the largest cryptocurrency payment processors. This collaboration highlights Litecoin’s utility and increasing appeal in commercial transactions, bolstering the firm’s confidence in launching a Litecoin ETF.

Canary Capital has submitted a proposal for an XRP ETF in addition to the Litecoin ETF, indicating a larger trend of growing institutional interest in cryptocurrency investments. In line with a recent application from investment firm Bitwise, this submission shows that financial institutions are becoming more interested in investigating financial products tied to cryptocurrencies.

However, the ongoing legal dispute between the SEC and blockchain payment provider Ripple makes the approval procedure for an XRP ETF difficult. There is still debate over whether XRP should be classified as a security or a commodity, with the latter presenting major regulatory hurdles.

On the other hand, the U.S. Commodity Futures Trading Commission (CFTC), which described Litecoin as a commodity in a complaint against KuCoin earlier this year, has recently provided a positive indicator for the Litecoin ETF.

The proposed spot Litecoin ETF may have an easier time getting approved thanks to this category because commodities typically face fewer regulatory barriers than what the SEC considers “securities.”

As interest in cryptocurrency investment products grows, the launch of the first spot Litecoin ETF could mark a pivotal moment for institutional participation in the digital asset space.

Also Read: Litecoin Celebrates 13 Years, Leads Global Crypto Payments