A Litecoin ETF will be the subsequent cryptocurrency ETF to be accepted within the United States given the present circumstances. Bloomberg Senior ETF Analyst Eric Balchunas made this prediction after Canary Capital filed an amended S-1 registration kind in relation to its Litecoin ETF proposal.
Amended Litecoin ETF S-1 Filing Suggests SEC Engagement
Canary Capital had submitted the S-1 registration kind for the Litecoin ETF with the U.S. Securities and Exchange Commission (SEC) in October 2024. On Wednesday, the corporate filed an amended model of this way. According to the submitting, U.S. Bancorp Fund Services would act because the administrator of the ETF, whereas Coinbase Custody Trust and BitGo would act because the custodians for the Litecoin of the fund.
NEW: @CanaryFunds simply filed an amended S-1 for his or her Litecoin ETF submitting. No ensures — however this is perhaps indicative of SEC engagement on the submitting. Still no 19b-4 submitting but although
(A 19b-4 would truly begin the potential approval/denial clock) h/t @isabelletanlee pic.twitter.com/wFtNOmbmYx
— James Seyffart (@JSeyff) January 15, 2025
Some of the trade watchers together with the Bloomberg analysts have recommended that that the modification of the submitting might be a sign of SEC’s curiosity. Another Bloomberg ETF analyst, James Seyffart identified that the modification might imply the SEC has provided feedback on the appliance. However, there was no 19b-4 submitting made, which is a proper software for rule change that initiates the approval course of.
“We had heard chatter that the Litecoin S-1 had gotten comments back from [the] SEC,” stated Balchunas in a publish on X (previously Twitter). He additionally stated that that is consistent with his earlier declare that Litecoin is ‘most likely’ to be the subsequent cryptocurrency ETF within the United States.
New SEC Leadership Adds Uncertainty
The timing of the Litecoin ETF’s approval course of might depend upon upcoming modifications in SEC management. Gary Gensler, the present SEC chair, is ready to step down on Monday. Former SEC commissioner Paul Atkins, who has expressed help for the cryptocurrency sector up to now, has been nominated to lead the company.
However, the Senate has but to affirm Atkins’ appointment, and the precise timeline stays unsure.
Balchunas emphasised that the management transition is a “huge variable” within the approval course of for the Litecoin ETF.
Growing Interest in Spot Crypto ETFs
Created in 2011 as a extra environment friendly model of Bitcoin, Litecoin is without doubt one of the oldest and most secure blockchains. Following the announcement, the worth of Litecoin spiked by greater than 18% to commerce at $119.46 on the time of writing.
Analysts consider that the present bullish rally might break by means of the $130 barrier, with the LTC price prediction standing at $170. In addition, open curiosity elevated by 29.58% to $575.39 million inside the final 24 hours whereas the buying and selling quantity jumped considerably by 277.25% to $1.65 billion.
This pleasure comes within the wake of the current approval of U.S. spot Bitcoin and Ethereum ETFs in current months. These merchandise outperformed the market, which led to the expansion of curiosity amongst issuers within the creation of ETFs for altcoins like Solana and XRP.
A current JPMorgan and Hashkey research word recommended that new Solana and XRP ETFs might pull in $13.6bn of recent funds if they’re accepted inside six to 12 months. The introduction of altcoin ETFs comparable to Litecoin might also contribute to elevated institutional investments within the cryptocurrency house.
Next Steps for Litecoin ETF Approval
Even although the amended S-1 submitting marks a progress, there isn’t any certainty as to when the approval of the Litecoin ETF shall be accomplished. The submission of a 19b-4 software would formally kick off the SEC’s choice course of however Canary Capital has not given any indication of when this could occur.
The unique submitting of Canary recognized Litecoin as a blockchain that has had “100% uptime since its inception” noting its safety and stability as strengths. Industry contributors at the moment are centered on the subsequent steps, such because the SEC’s response and the doable 19b-4 submitting, because the momentum for the approval of the Litecoin ETF picks up.
Kelvin Munene Murithi
Kelvin is a distinguished author with experience in crypto and finance, holding a Bachelor’s diploma in Actuarial Science. Known for his incisive evaluation and insightful content material, he possesses a powerful command of English and excels in conducting thorough analysis and delivering well timed cryptocurrency market updates.
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