Nasdaq Files for Litecoin ETF: First Altcoin ETF of 2025 on the Horizon?

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Today, the Nasdaq initiated proceedings for a Litecoin ETF offered by Canary Capital, following their recent modification of Form S-1. This move indicates positive interactions with the SEC, as suggested by the adjustment.

Various financial experts predict that the SEC is likely to endorse this particular fund, thereby marking it as the initial altcoin-based ETF in the year 2025.

Canary Capital’s Litecoin ETF

As a crypto investor, I’m getting the sense that the journey towards a Litecoin ETF might be wrapping up soon. Just today, Canary Capital submitted an amendment to their S-1 registration form with the SEC, which could indicate imminent approval and is stirring up optimistic whale activity in the market.

Later on, ETF analyst Nate Geraci pointed out that the Nasdaq submitted Form 19b-4, seeking approval from the SEC to begin trading with Canary’s Litecoin ETF.

The Litecoin ETF has met all requirements and is set to debut in 2025, making it the first altcoin ETF of the year. With the SEC having commented on its S-1 filing, considering Litecoin as a commodity, and a new SEC leader now in charge, there seems to be no reason for this ETF not to go through, according to Eric Balchunas, another ETF analyst.

Should Canary Capital’s proposal for a Litecoin Exchange-Traded Fund (ETF) receive approval from the SEC, it could potentially influence the asset’s price in a notable way. Notably, Litecoin has been under considerable bearish pressure lately, with daily active addresses reaching a minimum not seen since the year 2023.

Nevertheless, the excitement surrounding this ETF has rapidly escalated, potentially sparking fresh energy.

Despite potential interest in a Litecoin Exchange-Traded Fund (ETF), it may not attract as much activity as some other altcoin ETFs. This is partly because the Litecoin protocol hasn’t seen as much development over time compared to other blockchain networks. Additionally, even during market uptrends, Litecoin’s growth has remained relatively stagnant.

It’s more probable that a Litecoin ETF will come to pass since the Securities and Exchange Commission (SEC) faces fewer obstacles in approving this fund. For example, the SEC recognizes Litecoin as a commodity, eliminating any ongoing discussion about whether the asset should be categorized as a security.

For several months, Canary Capital has been aggressively working towards the creation of a Litecoin Exchange Traded Fund (ETF). They’ve submitted applications to the Securities and Exchange Commission for various crypto ETFs, ranging from well-known contenders like Solana to less conventional options such as Hedera. It’s worth noting that Canary Capital is currently the sole entity aiming to launch an LTC-based product, which positions them uniquely in this market.

If the Securities and Exchange Commission (SEC) ultimately endorses a Litecoin Exchange Traded Fund (ETF), Canary Capital stands to seize a significant business opportunity. Being the first to market, the firm would promptly start trading its product, while other potential issuers rush to launch their own ETFs online.

While investing in Grayscale might have seemed promising initially due to their being the first to offer a Bitcoin ETF, it doesn’t necessarily ensure lasting success. In fact, Grayscale has underperformed significantly when compared to BlackRock over time.

Despite these rumors, they’ve already led to substantial price increases and attracted the attention of major investors. In essence, Canary stands to gain significantly if things continue this way. All that remains is a few more moves from the SEC to set off a new market. If granted approval, LTC would be the third cryptocurrency in the U.S. market to have an ETF.

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2025-01-17 02:33