Canary Capital: The First Litecoin ETF?

A Litecoin ETF has sometimes been considered a “dark horse candidate” for altcoin ETFs, but it has its adherents.

The Securities and Exchange Commission (SEC) has formally acknowledged Canary Capital’s 19b-4 filing for a Litecoin (LTC) exchange-traded fund (ETF). This marks the first time an altcoin ETF has received this level of approval from the Commission.

The ETF rumors have already caused another spike in LTC’s price. This gesture from the SEC is a very positive signal, but the Commission has yet to address most of the other altcoin ETF applications.

Rumors of a Litecoin ETF have swirled for some time now, but the latest development is sure to get the attention of crypto enthusiasts. Canary Capital, an ETF issuer, has filed a 19b-4 application with the SEC for a Litecoin ETF.

This filing is significant because it brings the ETF one step closer to approval. The SEC now has a hard deadline of 240 days to either approve or reject the application.

If approved, this would be the first altcoin ETF to hit the market. Currently, there are only two cryptocurrency ETFs available in the United States, both of which track Bitcoin futures.

However, these rumors have also had a positive impact on LTC’s price. According to data from TradingView, the asset began spiking on March 21.

This particular rally was sparked by the Nasdaq filing a form 19b-4 for its own Bitcoin ETF. Over the following day, the value of LTC rose by 12%.

This rally continued throughout the following weeks, and Grayscale’s filing of its own LTC ETF application also helped the asset’s price. Now, the SEC’s 19b-4 acknowledgment is maintaining this trend.

Despite this positive development, there is no guarantee that Canary Capital’s Litecoin ETF will ultimately be approved. Since Gensler resigned, a flurry of altcoin ETF applications have reached the SEC, and many of them have dismal chances of being approved.

The SEC’s actions here will serve as an important data point. Even if the SEC starts approving altcoin ETFs, it might not accept all of them.