Canary Capital Group, a start-up investment firm founded by former Valkyrie Funds co-founder Stephen McClurg, is looking to meet growing demand from issuers for a wide range of crypto-focused funds. Filed the first US ETF to track the spot price of Litecoin. .
Litecoin is a token of the Litecoin blockchain network and is the 22nd largest digital asset with a market capitalization of approximately $5.2 billion. The fund’s “purpose is… to provide exposure to LTC prices,” according to a filing Tuesday with the Securities and Exchange Commission.
This application is Canary’s second for an ETF based on altcoins (a term used to describe digital assets other than Bitcoin) in the past week. On October 8, the one-month-old company filed for a fund to track XRP, the seventh-largest cryptocurrency by market capitalization.
These proposals and recent funding applications based on the Solana token are part of the issuer’s efforts to respond to strong demand for crypto-based funds following the highly successful debut of Spot Bitcoin earlier this year. It reflects the expansion. These ETFs have generated nearly $20 billion in net inflows, according to British asset management firm Pharside Investors.
However, Canary Litecoin Fund is not the first. CoinShares and ETC Group, a division of Bitwise, currently offer exchange-traded products offering Litecoin exposure in Europe, and Grayscale has a trust that tracks the token’s performance.
Filing for a canary (called an S-1 registration statement) is part of a two-step process. The SEC also needs to approve a 19b-4 filing requesting rule changes that would allow stock exchanges to trade ETFs. The company does not disclose expense ratios or tickers.
Will Litecoin improve Bitcoin?
Litecoin was recently trading around $70 at one point Tuesday, up more than 5% in 24 hours, according to cryptocurrency data provider CoinMarketCap. Bitcoin, the largest digital asset by market value, rose about 1% during the same period.
The Litecoin protocol was created in 2011 by software engineer Charlie Lee to improve Bitcoin’s slow transaction speeds and create a more user-friendly cryptocurrency. According to the Litecoin Foundation, users have completed 77 million transactions since the beginning of the year, already an all-time record for the protocol, surpassing 67 million transactions in 2023.
“Litecoin presents a unique and attractive opportunity for investors seeking exposure to a proven and reliable cryptocurrency,” McClurg wrote in an emailed statement.
“Litecoin continues to play a leading role in the broader cryptocurrency ecosystem, and Canary believes it has the potential to become attractive to a wider range of institutional investors.” added.
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