The Nasdaq has filed form 19b-4 to trade Canary Capital’s Litecoin ETF, marking a significant step towards launching the first altcoin ETF in 2025. This follows Canary’s recent updates to its form S-1, which addressed SEC feedback, indicating that approval may be close.
Analysts are hopeful about the SEC approving the fund. ETF expert Nate Geraci believes all necessary steps have been taken, while Eric Balchunas notes the SEC’s positive stance on Litecoin as a commodity and recent leadership changes at the agency.
Canary Capital is pushing hard for a Litecoin ETF, having also sought approvals for other crypto ETFs like Solana and Hedera. However, it remains the only contender for a Litecoin ETF, giving it a unique advantage in this niche market.
Approval of the ETF could significantly benefit Litecoin, which has faced challenges recently, including a drop in daily active addresses. Despite these struggles, the ETF announcement has sparked renewed interest from large investors, known as “whales.”
Some analysts question whether a Litecoin ETF will attract as much attention as other altcoin ETFs. However, its classification as a commodity simplifies the approval process, reducing regulatory obstacles.
Canary Capital’s first-mover advantage in the Litecoin ETF space could be crucial. If approved, it would trade before any competitors, positioning Canary as a market leader. Yet, early entry does not guarantee success, as seen with Grayscale’s Bitcoin ETF, which lagged behind BlackRock’s offering.
The ETF buzz has already led to a rise in Litecoin’s price and increased trader interest. If launched, Litecoin would become the third cryptocurrency with an ETF in the US, marking a major milestone. Canary Capital’s efforts may soon pay off, potentially reshaping the Litecoin market and establishing its role in crypto ETFs.
