Litecoin ETF filed by Canary Capital, here's the latest update

Bittime - A Litecoin ETF is in the spotlight after Canary Capital took a big step by filing an S-1 form with the Securities and Exchange Commission (SEC). If approved, this will be the first altcoin ETF after Bitcoin and Ethereum. What are the chances?

Canary Capital has started the process of filing for a Litecoin ETF by filing Form 19b-4. This move starts the countdown to SEC review, where a decision will be made in the coming weeks.

James Seyffart, ETF analyst with Bloomberg, expressed optimism that the application has a chance of being approved. Litecoin (LTC), which is an offshoot of Bitcoin, has similar characteristics to Bitcoin which is already recognized as a commodity by the SEC.

If successful, Litecoin will become the third digital asset with an ETF after Bitcoin and Ethereum, making it a great opportunity for investors looking to add exposure to LTC coins through traditional market instruments.

Also read: World Liberty Financial (WLFI) Buy ETH, wBTC, LINK, and TRX!

Litecoin Has Advantages Over Other Altcoins

Currently, some ETF filings for other altcoins, such as Solana, have not received official recognition from the SEC. This is in contrast to Litecoin, which has an advantage due to its nature as an established payment token.

Eric Balchunas, senior ETF analyst, mentioned that “the Litecoin ETF now has all the boxes checked.” The SEC has already provided preliminary comments on Canary Capital's Form S-1, indicating a greater chance of approval.

Additionally, Litecoin is often considered a commodity, making it easier to regulate than other digital assets that are often classified as securities.

Potential Impact on Litecoin Price

This news has had a major impact on the Litecoin price. Since the leaks regarding the ETF filing surfaced, the LTC coin has recorded a 20% surge. Investors are starting to speculate that the ETF approval could trigger another huge rally for Litecoin.

If the ETF is approved, it will not only increase the market value of the LTC coin but also open the door for wider adoption through institutional investment.

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Regulatory Change: New Opportunities in 2025

A major change in SEC leadership is also a breath of fresh air. The departure of SEC Chairman Gary Gensler in January 2025 could benefit crypto-based projects.

With pro-crypto commissioners like Hester Peirce and Mark Uyeda, the SEC is expected to be more open to digital asset-based ETFs, including Litecoin ETFs.

Litecoin has a great chance of becoming the first altcoin with an SEC-approved ETF. Investors need to monitor this development as the SEC's decision will not only affect Litecoin's price but also the future of digital assets in the traditional financial ecosystem.

FAQ

What is a Litecoin ETF?

A Litecoin ETF is an exchange-traded fund designed to track the value of the LTC coin. With this ETF, investors can gain exposure to Litecoin without the need to directly purchase or hold the digital asset.

Why is Canary Capital's Litecoin ETF filing drawing attention?

The filing is important because if approved by the SEC, the Litecoin ETF will be the first altcoin ETF after Bitcoin and Ethereum. This opens up a huge opportunity for institutional adoption and has the potential to significantly increase Litecoin's price.

What impact will ETF approval have on LTC coin price?

If the Litecoin ETF is approved, it could trigger increased demand from retail and institutional investors. The impact will most likely push the LTC coin price to higher levels, with a potential surge in value in the long run.

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References

thedefiant.io, Litecoin Surges on ETF Speculation, accessed on January 21, 2025.

Author: AWW