TLDR

• Canary Capital’s Litecoin spot ETF has been listed on DTCC under ticker LTCC, though SEC approval is still pending
• The Litecoin ETF application is expected to be the first to receive an SEC decision among similar filings
• Bloomberg analysts view Litecoin-based funds favorably as Litecoin is already classified as a commodity by CFTC
• Litecoin’s price has increased over 100% since the first ETF filing, currently trading around $130
• The SEC has acknowledged multiple spot XRP ETF filings, including from Canary Capital, 21Shares, Bitwise, Grayscale and CoinShares

Canary Capital has reached a new milestone in its pursuit of a Litecoin spot ETF, securing a listing on the Depository Trust and Clearing Corporation (DTCC) system under the ticker LTCC. This development represents a crucial step in establishing the trading infrastructure needed for the fund’s potential launch, though final approval from the Securities and Exchange Commission (SEC) remains pending.

The DTCC serves as the primary clearing and custody service provider for securities transactions in the United States. Its role involves processing and settling millions of securities transactions daily, making it an essential component of the American financial system.

Canary Capital submitted its spot Litecoin ETF application in October 2024. Following their lead, other major asset managers including Grayscale and CoinShares have filed similar applications. Among these submissions, market observers expect the Canary application to be the first to receive an SEC decision.

The timing of these applications follows the SEC’s previous approvals of spot Bitcoin ETFs and spot Ethereum ETFs last year. The crypto industry has seen increased activity in ETF filings in recent months, coinciding with changes in the U.S. political landscape.

Bloomberg ETF analysts Eric Balchunas and James Seyffart have expressed optimism about the prospects for Litecoin-based funds. Their positive outlook stems from Litecoin’s existing classification as a commodity by the Commodity Futures Trading Commission (CFTC), which may streamline the approval process.

The market has responded positively to these developments. According to data from CoinGeko, Litecoin’s price has more than doubled since the first Litecoin ETF filing was submitted to the SEC. The digital asset currently trades at approximately $130, with recent trading showing a 2% increase.

Crypto ETF Applications Under SEC Review

In parallel developments, the SEC has acknowledged several spot XRP ETF filings. The agency recently recognized a filing from Cboe BZX Exchange on behalf of Canary Capital for a spot XRP ETF. This acknowledgment opens a 21-day comment period following the filing’s publication in the Federal Register.

The XRP ETF application process involves two main steps. The 19b-4 filing, which represents the second phase, triggers the SEC’s formal approval process once published in the Federal Register. The agency can then choose to approve, disapprove, or initiate further proceedings.

Other major financial firms have also entered the XRP ETF race. The SEC has acknowledged similar filings from 21Shares, Bitwise, Grayscale, and CoinShares, indicating growing interest in expanding the range of cryptocurrency investment products.

The regulatory landscape for cryptocurrency ETFs continues to evolve. A new crypto task force, led by Republican SEC Commissioner Hester Peirce, has been established to evaluate which crypto assets qualify as securities, among other priorities.

These developments follow successful launches in the cryptocurrency ETF space. The approval and launch of spot Bitcoin ETFs marked a watershed moment for the industry, opening the door for other digital asset investment products.

The current process for Litecoin and XRP ETFs mirrors the path taken by previous cryptocurrency ETF applications. Each step requires careful regulatory review and compliance with existing securities frameworks.

Market participants are closely monitoring these developments. The potential approval of new cryptocurrency ETFs could expand investment options for both retail and institutional investors.

Trading infrastructure preparations continue as asset managers await regulatory decisions. The DTCC listing represents one of several technical and administrative requirements that must be met before an ETF can begin trading.

The most recent data shows continued price movement in the underlying assets. While Litecoin trades near $130, market analysts track trading volumes and price movements for indicators of market sentiment regarding potential ETF approvals.