ETF analyst James Seyffart has shared that Canary Capital has amended the S-1 filing for its Litecoin ETF, a move that hints at increased involvement from the U.S. Securities and Exchange Commission. (SEC).
The latest development on the proposed Litecoin ETF has sparked optimism in the market.
Litecoin could be the next crypto ETF to receive approval from the SEC
While Seyffart noted that “there are no guarantees,” the filing amendment could indicate that the SEC has begun to look more closely at the proposal.
“CanaryFunds just filed an amended S-1 for their Litecoin ETF. There are no guarantees – but this could indicate SEC involvement in the filing. However, no 19b-4 filing has yet been filed. (Filing 19b-4 will actually start the potential approval/denial clock) h/t,” Seyffart wrote on Twitter on January 16.
In this context, an S-1 filing is an important step in the SEC approval process for any new investment product. While this amendment does not guarantee approval, it does show that the SEC is paying attention to the proposal.
However, as Seyffart points out, no 19b-4 filings have yet been filed. This is a formal requirement to list and trade an ETF on a national stock exchange.
This filing is important to start the official clock on the SEC’s potential approval or denial of the ETF, meaning the process could still take some time.
Canary Capital filed for a Litecoin ETF last October, less than a month after it filed for an XRP ETF.
Eric Balchunas, another Bloomberg analyst, also supports the idea that the SEC has started getting involved with the Litecoin ETF filing. Balchunas cited “rumors” suggesting that the SEC has provided feedback on the S-1, which he believes strengthens the case for Litecoin to be the next cryptocurrency to receive approval for an ETF.
Balchunas and Seyffart both believe that approval of a Litecoin ETF may be near. However, they cautioned that the appointment of a new SEC chairman could be an important variable affecting the timing. To date, the SEC has been cautious in approving cryptocurrency ETFs, with Bitcoin and Ethereum ETFs receiving some notable consideration.
News of this ETF has pushed up Litecoin prices as LTC was trading at $119.22 at press time. The price of the cryptocurrency has increased by 16.8% in the past 24 hours.
Additionally, Grayscale’s Litecoin Investment Trust has offered US investors exposure to LTC through its ETP product. It appears that Grayscale’s Trust has quietly accumulated over 500,000 LTC during 2024.
Based on Coinglass data, the Trust held less than 1.5 million LTC coins in January 2024. One year later, the investment firm’s holdings had grown to more than 2 million. Grayscale’s move shows that the company anticipates strong investor interest in Litecoin.