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The US Securities and Exchange Commission (SEC) has officially recognized Canary Capital’s 19b-4 application for a spot Litecoin exchange-traded fund (ETF).
This signifies the first acknowledgment of an altcoin 19b-4, as noted by senior Bloomberg ETF analyst Eric Balchunas on X. Other applications have been instructed to withdraw by the SEC under Gary Gensler’s leadership.
This indicates that Canary Capital’s altcoin ETF is the first to receive this approval after Ethereum, initiating a 240-day timeframe for the regulator to either approve or deny it.
“Considering the SEC’s comments on the S-1, this filing is by far the most advanced in meeting all the requirements.”
First altcoin 19b-4 to be acknowledged, others have been instructed to withdraw by Gensler’s SEC. Considering the SEC’s comments on the S-1, this filing is by far the most advanced in meeting all the requirements. The question now is whether the SEC will utilize the full 240 days or approve sooner. Unknown. https://t.co/iXwq9PkLGr
— Eric Balchunas (@EricBalchunas) January 29, 2025
The ETF analyst has raised the question of whether the Commission will take the entire 240-day review period or “approve sooner.”
Additionally, the regulator has opened a public comment period, allowing the public to share their views on the spot Litecoin ETF through designated channels.
This action from the Commission is seen as a positive indication; however, it has yet to address the majority of altcoin ETF applications. Following Gary Gensler’s resignation, the SEC received approximately 33 crypto ETF applications within just 24 hours after Trump’s inauguration.
Canary Capital submitted an amended S-1 registration statement for the Litecoin ETF last week, leading Eric Balchunas to speculate that this is “likely to be the next coin approved.”
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We had heard discussions that the Litecoin S-1 had received feedback from the SEC. This seems to confirm that, which is promising for our prediction that Litecoin is likely to be the next coin approved. All that said, the new SEC chair has yet to take office, and that’s a significant variable. https://t.co/cKFswPwcr0
— Eric Balchunas (@EricBalchunas) January 15, 2025
Furthermore, the SEC’s acknowledgment of the ETF has resulted in a 12% increase in Litecoin’s price. The altcoin is currently trading at $125.39 at the time of this report, according to CoinMarketCap data.
Why Litecoin ETF Has More Potential for Approval?
Litecoin, often referred to as the “digital silver” to Bitcoin’s “gold,” has consistently attracted investors due to its faster transactions, lower fees, and scalable ecosystem.
Sharing similarities with Bitcoin’s framework, as Litecoin is a fork of Bitcoin, the SEC has never classified it as a security in contrast to larger cryptocurrencies such as Ripple (XRP) and Solana (SOL).
Moreover, the Exchange Act Rule 19b-4 compels the regulator to either approve or reject the Litecoin ETF. This process involves a thorough examination of market impacts, ensuring that appropriate operational safeguards are in place before proceeding with a listing.
Balchunas predicted in December that this year would see a surge of crypto ETFs, “though not all at once.”
“The first to emerge is likely to be the bitcoin and ether combination ETFs, followed by Litecoin (due to its status as a fork of Bitcoin = commodity), then HBAR (since it is not classified as a security), and finally XRP/Solana (which have been classified as securities in ongoing lawsuits).”
We anticipate a wave of cryptocurrency ETFs next year, although not all at once. The first to emerge is likely to be the btc + eth combo ETFs, then probably Litecoin (because it’s a fork of btc = commodity), then HBAR (because it’s not classified as a security), and then XRP/Solana (which have been classified as securities in pending… pic.twitter.com/29vMdciZxE
— Eric Balchunas (@EricBalchunas) December 17, 2024
The post US SEC Officially Accepts Canary Capital’s Litecoin ETF Filing appeared first on Cryptonews.
