The U.S. Securities and Exchange Commission (SEC) is reportedly on the verge of approving its first-ever Exchange Traded Fund (ETF) for Litecoin, according to ETF analyst Eric Balchunas. He revealed that the SEC had responded to the S-1 application form for the Litecoin ETF, which aligns with the prediction that Litecoin would likely be the next cryptocurrency to receive ETF approval. However, the new SEC chairman, Paul Atkins, has yet to take office, a significant variable that Balchunas emphasized.
The analyst’s comments were prompted by James Seyffart, a Crypto Asset Management analyst at Bloomberg, who stated that Canary Funds had submitted an amended S-1 for their Litecoin ETF filing. “No guarantees — but this might be indicative of SEC engagement on the filing. Still no 19b-4 filing yet though,” Seyffart commented, sharing an image of the filing in his tweet.
The submitted filing discloses that Canary Capital Group LLC will manage the ETF, which will hold actual Litecoin. The shares of the ETF are set to trade on the Nasdaq Stock Market. However, this offering is currently in the preliminary stages. Sale of the ETF cannot commence until the SEC approves the registration, and it does not serve as an offer or solicitation in jurisdictions where such sales are restricted.
In the midst of the speculative buzz about the SEC’s potential approval, Grayscale Litecoin Trust (LTC) managed to raise $2.3 million through the private placement of 242,900 new shares on January 9, 2025. These shares, priced based on the Trust’s Net Asset Value (NAV), correspond to 20,482.83821511 Litecoin (LTC). With this new issuance, the Trust’s total outstanding shares have risen to 24,137,200.
Should the SEC give its stamp of approval, Litecoin will join Bitcoin and Ethereum ETFs, which have already been approved. Meanwhile, Solana and Ripple (XRP) ETFs are still awaiting regulatory approval to enter the market.
The cumulative total net inflow for Bitcoin and Ethereum ETFs as of January 15 has reached a staggering $35.98 billion and $2.42 billion, respectively. This underscores the massive scale of the cryptocurrency ETF market and highlights the potential for Litecoin should it gain approval.
This story remains a developing one, as the crypto world eagerly awaits the SEC’s decision, which could significantly influence the future trajectory of Litecoin and the broader cryptocurrency ETF market.
