TLDR:
- Canary Capital filed an amended S-1 form for a Litecoin ETF on January 15, 2024, with Bloomberg analysts suggesting Litecoin could be the next cryptocurrency to receive ETF approval after Bitcoin and Ethereum
- The amended filing includes updates on agreements with custodians Coinbase and BitGo, though a 19b-4 filing is still required to start the approval process
- Litecoin’s price surged over 15% between January 15-16, with whale investors accumulating 250,000 LTC worth approximately $29 million
- The filing comes just before President-elect Trump’s inauguration and the appointment of Paul Atkins as SEC chair, both expected to create a more crypto-friendly regulatory environment
- JPMorgan analysts predict potential spot Solana and XRP ETFs could attract between $3-8 billion in assets in their first year
Canary Capital has taken a step toward launching a Litecoin exchange-traded fund (ETF) by filing an amended S-1 form with the Securities and Exchange Commission (SEC) on January 15, 2024. The move positions Litecoin as a potential candidate to become the third cryptocurrency to receive ETF approval in the United States, following Bitcoin and Ethereum.
The amended filing includes updated provisions regarding agreements with cryptocurrency custodians Coinbase and BitGo. These modifications address various aspects of the proposed ETF, including accounting procedures, marketing strategies, legal requirements, and tax considerations.
Bloomberg ETF analyst Eric Balchunas noted that the filing aligns with industry discussions suggesting the SEC is actively reviewing Litecoin ETF applications. However, Balchunas emphasized that an upcoming change in SEC leadership could affect the approval process.
We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that’s a huge variable. https://t.co/cKFswPwcr0
— Eric Balchunas (@EricBalchunas) January 15, 2025
James Seyffart, another Bloomberg ETF analyst, pointed out that while the S-1 amendment represents progress, Canary Capital must still submit a 19b-4 filing to initiate the formal approval or denial process. This requirement remains a key step in the regulatory pathway.
The cryptocurrency market has responded positively to the news, with Litecoin experiencing a more than 15% price increase between January 15 and 16. This surge made Litecoin the best performer among cryptocurrencies with market capitalizations exceeding $8 billion during that period.
Blockchain analytics firm Santiment reported substantial accumulation by large investors, known as “whales” and “sharks.” These investors have acquired approximately 250,000 Litecoin, valued at around $29 million, since January 9, indicating growing institutional interest in the cryptocurrency.
The timing of Canary’s filing is notable, coming just before the inauguration of President-elect Donald Trump, who has assembled what many consider the most crypto-friendly administration to date. The transition will see current SEC Chair Gary Gensler replaced by Paul Atkins, who served as an SEC commissioner from 2002 to 2008.
Industry observers expect Atkins to foster a more accommodating regulatory environment for cryptocurrency investments. His appointment could influence the timeline and outcome of pending crypto ETF applications.
While Litecoin advances in the ETF approval process, other cryptocurrencies are also seeking similar recognition. Solana has made progress with multiple ETF issuers, including Bitwise, VanEck, 21Shares, and Canary, all having submitted 19b-4 filings in November.
JPMorgan analysts have provided estimates for potential asset accumulation in crypto ETFs. They project that spot Solana ETFs could attract between $3 billion and $6 billion in net assets during their first year of trading.
XRP is another cryptocurrency pursuing ETF approval. JPMorgan estimates that a spot XRP ETF could gather between $4 billion and $8 billion in its initial year. Bloomberg’s Balchunas considers these projections reasonable.
The amended S-1 filing demonstrates Canary Capital’s commitment to addressing regulatory requirements and establishing robust operational frameworks for the proposed Litecoin ETF. The updates cover essential aspects of fund management and investor protection
