- A larger spectrum of institutional investors are expected to find Litecoin appealing, according to Canary Capital.
- According to James Seyffart, an analyst at Bloomberg ETF, Litecoin and bitcoin may have comparable regulatory frameworks.
A few days after registering an XRP product, Canary Capital registered a Litecoin exchange-traded fund with the U.S. Securities and Exchange Commission.
For the Canary Litecoin ETF, the cryptocurrency investment firm submitted an S-1 registration statement on Tuesday. According to the filing, the fund aims to give exposure to the price of LTC owned by the Trust. There was no mention of an administration or caretaker.
Canary Capital was formed by Steven McClurg, who also founded Valkyrie Funds, which offers other spot crypto exchange-traded funds.
A larger spectrum of institutional investors will find Litecoin appealing since it plays a prominent role in the larger cryptocurrency ecosystem, according to a statement from Canary Capital.
According to an email statement from the company, Canary thinks that Litecoin offers a special and alluring opportunity for investors looking to gain exposure to a reputable and tried-and-true cryptocurrency. Litecoin, one of the oldest blockchains still operational today with a perfect record of uptime since launch, has shown security and dependability through important enterprise-grade use cases.
According to a post on X by Bloomberg ETF expert James Seyffart, several exchange-traded products, such as one from CoinShares in Switzerland and a Grayscale trust in the United States, contain Litecoin.
Seyffart added that Litecoin and Bitcoin might be comparable in terms of regulation. Earlier this year, the SEC allowed spot bitcoin ETFs.
Because Litecoin split out from Bitcoin, I believe it will have a commodity regulatory status similar to Bitcoin, Seyffart stated in a statement to The Block. However, in order for an ETF to be approved under the current administration, there must exist a sizable, liquid, and federally regulated futures market in the United States. For now, Litecoin does not meet that condition.
Next year’s presidential elections might have an impact. Regarded as being amicable to business, the former president declared he would dismiss SEC Chair Gary Gensler.
Thus, in my opinion, this is mostly a wager on a Trump win and a shift in the SEC’s leadership, according to Seyffart. The clock would not start to run on an SEC response until we saw a 19b-4 filing.
Exchanges submit 19b-4 filings on behalf of issuers, which initiate the SEC’s approval procedure upon submission.
Bitwise also filed for a product similar to the spot XRP ETF, and earlier this month Canary Capital filed an S-1 registration statement for one. The SEC has never approved a spot XRP ETF, and even if it does, there may be obstacles in its way. The SEC and Ripple are locked in a legal battle when the agency claimed that Ripple raised $1.3 billion by selling XRP, which it considers to be an unregistered security.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
