Canary Capital has recently amended its S-1 filing for a litecoin exchange-traded fund (ETF), suggesting that the altcoin may soon be considered for regulatory approval in the United States. If successful, this would position litecoin among the ranks of Bitcoin and Ether as the next digital asset to receive ETF status in 2024. Analysts from Bloomberg indicate that this move aligns with ongoing discussions within the industry regarding the SEC’s review process of litecoin -related filings.
The amended S-1 filing is a strategic step often undertaken after ETF issuers receive guidance from the Securities and Exchange Commission. Another noteworthy aspect is that for the approval process to commence, Canary’s S-1 must be accompanied by a 19b-4 filing, a necessary precursor to determining the fate of the ETF application. In contrast, Solana appears to be progressing more rapidly on this front, with multiple issuers, including Bitwise and VanEck, having already submitted the required 19b-4 filings for a spot Solana ETF.
Notably, the amended provisions in Canary’s filing pertain to their agreements with crypto custodians, reflecting considerations in various operational areas such as accounting and legal issues. Should it gain the green light, litecoin would become the United States’ third approved spot crypto ETF, following Bitcoin and Ether.
Additionally, litecoin experienced a significant surge of over 15% from January 15 to January 16, driven by increased interest from large investors accumulating substantial amounts of the cryptocurrency. Reports suggest that “whales” and “sharks” have purchased approximately 250,000 Litecoins, valued at around $29 million, since early January.
As political dynamics shift following the presidential inauguration, there are expectations that the new SEC leadership may create a more favorable regulatory atmosphere for cryptocurrencies. Speculators are also considering the potential for XRP to follow litecoin in receiving ETF approval, with analyses projecting that newly approved ETFs could attract substantial net assets in their first year.
