A Litecoin exchange-traded fund (ETF) is likely to be the next crypto ETF approved in the U.S., according to Bloomberg Senior ETF Analyst Eric Balchunas. His comments follow Canary Capital’s recent submission of an amended S-1 form for its Litecoin ETF. The S-1 form is a registration document filed with the Securities and Exchange Commission (SEC) for new securities.
Balchunas noted that the SEC had provided feedback on the Litecoin S-1, which is a positive sign for its approval. However, he mentioned a significant uncertainty: the appointment of a new SEC chair after Gary Gensler’s departure. President-elect Donald Trump has nominated Paul Atkins, a crypto-friendly former SEC commissioner, but the confirmation timeline remains unclear.
Another Bloomberg analyst, James Seyffart, suggested that the amended S-1 filing indicates the SEC’s engagement with the proposal. He pointed out that a 19b-4 filing, which is a request for a rule change by a self-regulatory organization, would signal a stronger likelihood of approval.
Canary first filed its Litecoin ETF S-1 in October 2022. The amended filing states that U.S. Bancorp Fund Services will administer the ETF, while Coinbase Custody Trust and BitGo will act as custodians for Litecoin.
In related news, the SEC is appealing a court ruling regarding XRP’s classification, which could impact the regulatory landscape for cryptocurrencies. Litecoin, created in 2011, is known for its security and reliability, currently ranking as the 25th largest cryptocurrency with a market cap of $8.9 billion. It recently saw a 15% price increase, trading at $118.54.
With the success of U.S. spot bitcoin and ether ETFs, interest in altcoin ETFs like those for Solana and XRP is growing, potentially attracting significant investments if approved.
