US SEC Accepts Canary Capital’s Litecoin ETF Application
The US SEC has officially accepted Canary Capital’s 19b-4 application for a spot Litecoin ETF. This recognition marks a first for an altcoin, according to Bloomberg ETF analyst Eric Balchunas.
A 240-Day Deadline for a Decision
The acceptance forces the SEC to decide within 240 days. So far, the Commission has asked other applicants to withdraw their filings.
Balchunas highlights that this application is the most advanced among altcoin ETFs. It remains to be seen if the SEC will use the full period or rule more quickly.
Public Comment Period Open
The regulator allows the public to submit opinions on the Litecoin ETF through designated channels. This move signals a positive step, though other altcoin ETF applications remain pending.
After Gary Gensler’s resignation, the SEC received about 33 crypto ETF applications within 24 hours. This wave followed Donald Trump’s inauguration.
Why a Litecoin ETF Has Higher Approval Chances
Litecoin, often called “digital silver” to Bitcoin’s “digital gold,” offers faster and cheaper transactions.
Unlike Ripple (XRP) and Solana (SOL), the SEC has never classified Litecoin as a security. Its status as a Bitcoin fork strengthens its positioning as a commodity.
Market Impact
The ETF acceptance has driven Litecoin’s price up by 12%, reaching $125.39 at the time of writing. This increase confirms investor interest in cryptos with a clearer regulatory framework.
A Key Year for Crypto ETFs
Balchunas predicts a wave of crypto ETF approvals in 2024. He expects Bitcoin and Ethereum to be approved first, followed by Litecoin.
The future of crypto ETFs will depend on the stance of the next SEC chair and regulatory developments. One thing is certain: the market is closely watching these events.
