Investment management firm Canary Capital Group officially filed Form S-1 for the first-ever Litecoin exchange-traded fund (ETF) with the United States Securities and Exchange Commission on October 15. Canary Capital confirmed that the Canary LTC ETF will expose investors to LTC prices provided by the ETF while reducing its risks and operational costs.
The LTC Trust will ensure that investors have an easy way of interacting with the crypto while avoiding the complexities of crypto trading. As such, willing investors can buy shares of the Canary LTC ETF and trade them on the exchanges where the ETF will be listed. The trust behind the ETF will solely hold the Litecoin for the fund, which will also track the ETF’s value.
Canary Capital Group is a one-month-old asset management company created by Steven McClurg, a former executive in the Valkyrie Fund. Steven was the co-founder and chief investment officer of the Valkyrie Group. Now, McClurg is the CEO of Canary Capital Group and the guide behind the Canary LTC ETF.
McClurg explained the reason behind the creation of Canary Capital as the increasing need for crypto-related offerings. The firm aims to drive innovation while offering solutions beyond retail products. The firm also focuses on risk management in crypto investments and ‘adaptive, strategic, foresight.’
Canary Capital describes why Litecoin is favorable for an ETF
Canary Capital explained that Litecoin is a favorable cryptocurrency for investors who want to explore a digital asset that has withstood the test of time. Litecoin celebrated its 13th anniversary on October 13. According to on-chain data, Litecoin is the longest-standing blockchain that hasn’t suffered any downtime, making it a reliable option.
In the filing, Canary Capital included other aspects of Litecoin, such as its founder, Charlie Lee, who has been significantly involved in the blockchain’s roadmap. The investment manager also outlined the cryptocurrency’s supply, value, mining rewards, and more.
It is worth noting that other asset management companies, including Grayscale, CoinShares, and Bitwise, have recognized Litecoin as a favorable product for their investors. The three asset management firms have Litecoin exchange-traded products, with the most notable one being the Grayscale Litecoin Trust.
Canary Capital files for an XRP ETF
BREAKING: Canary Capital just filed an S-1 for an $XRP ETF with the SEC 🔥‼️ pic.twitter.com/GMWXzXcTi9
— MASON VERSLUIS (@MasonVersluis) October 9, 2024
The Canary Capital Group’s step to filing for the Canary LTC ETF comes after the asset management firm filed for an XRP spot ETF. Canary’s filing came a few days after Bitwise joined the XRP ETF race. The investment management firm is now the second company to file for an XRP ETF.
A Canary Capital spokesperson said on October 8 that the markets showed encouraging signs of regulatory maturity. The spokesperson also confirmed investors’ growing interest in cryptocurrencies beyond BTC and ETH. The company confirmed that more people are looking for enterprise-grade solutions, which Ripple and its token XRP ranked as.
The two filings come after the U.S. SEC filed a notice of appeal with the U.S. Court of Appeals. According to several X users, the filings for XRP ETFs with the U.S. SEC might show that crypto firms no longer care what the commission thinks. Others also believed the renewed interest in XRP ETFs could bring more attention to Ripple’s native assets.
