Hassan Maishera
TL;DR
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The SEC has asked for public opinion on the Canary Litecoin ETF.
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This comes two weeks after NASDAQ filed the 19b-4 form for Canary Capital’s Litecoin ETF with the regulator.
SEC Seeks Public Opinion on the Canary Litecoin ETF Application
The United States Securities and Exchange Commission (SEC) is seeking public comments on the Canary Litecoin ETF proposal as it inches closer to accepting or rejecting the application.
In a filing posted on Wednesday, the SEC urged the public to submit their comments 21 days after publication in the Federal Register.
This latest development comes two weeks after Nasdaq filed a 19b-4 form for Canary's spot Litecoin ETF. The form is necessary to enable the regulator to approve a spot Litecoin ETF. According to the fund, U.S. Bancorp Fund Services, LLC will be the administrator, and U.S. Bank N.A. will hold the ETF's cash. Coinbase Custody Trust Company LLC will custody the ETF's litecoin.
While commenting on this latest development, Eric Balchunas, senior ETF analyst for Bloomberg, said Nasdaq's 19b-4 filing was the first altcoin ETF to be "acknowledged." He added that with the comments now opened by the SEC, the Canary Litecoin ETF filing is by far the furthest along checking all the boxes.
First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown. https://t.co/iXwq9PkLGr
— Eric Balchunas (@EricBalchunas) January 29, 2025
2025 could well be the year of altcoin ETFs. Following the approval of spot Bitcoin and Ethereum ETFs in 2024, several firms have applied with the SEC to launch other spot crypto ETFs.
So far, there are applications for Litecoin, Solana, XRP, and Dogecoin spot ETFs. Many industry participants view the SEC as crypto-friendly as it is currently led by SEC Acting Chair Mark Uyeda, who recently picked fellow Republican Commissioner Hester Peirce to lead a crypto task force.
Litecoin’s LTC is the best performer among the top 20 cryptocurrencies by market cap, up 7% in the last 24 hours. At press time, LTC is trading at $121 per coin.
