Canary Capital's Litecoin ETF Filing Advances Amid 14% Price Surge

Jan 16, 2025, 03:14 PM

Canary Capital has taken a significant step in its pursuit of a Litecoin-based exchange-traded fund (ETF) by filing an amended S-1 registration form with the U.S. Securities and Exchange Commission (SEC). Analysts interpret this move as a sign of regulatory engagement, with Bloomberg ETF analyst Eric Balchunas suggesting that Litecoin could be the next cryptocurrency to receive approval for a spot ETF in the United States. Following the S-1 amendment, Nasdaq filed a 19b-4 form on January 16, officially initiating the SEC's review process. This development has fueled optimism in the crypto market, with Litecoin's price surging by over 14% to reach $119. Litecoin has gained 71.6% over the past year and remains 72% below its all-time high of $410, leaving room for further growth if regulatory approval is secured. Canary Capital’s filing includes agreements with Coinbase and BitGo as custodians to meet SEC standards. Additionally, Polymarket odds for a Litecoin ETF approval have risen to 60%, reflecting growing market confidence. If approved, Litecoin would join Bitcoin and Ethereum as the only cryptocurrencies with U.S.-approved spot ETFs. The SEC's leadership transition, with Paul Atkins set to assume the chairmanship, is expected to influence the regulatory landscape, potentially creating a more favorable environment for crypto ETFs.