In a notable development in the cryptocurrency market, asset management company Canary Capital has formally filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch the country’s first Spotlight Coin ETF. .
Canary Capital aims to launch Litecoin ETF
In a statement released on Tuesday, Canary Capital emphasized that Litecoin offers a “unique and attractive investment opportunity.” They believe that Litecoin has a considerable track record and has maintained 100% occupancy since launch, which will be beneficial to their ultimate goal of managing a Litecoin ETF for further exposure. I emphasized that.
Canary Capital also noted that Litecoin is the leading cryptocurrency for real-world payments, particularly through its partnership with BitPay, one of the industry’s largest payment processors.
In addition to filing for a Litecoin ETF, Canary Capital has also recently filed an application for an XRP ETF, highlighting the growing interest of institutional investors in crypto investing.
The move follows a similar filing by investment firm Bitwise and signals a growing trend among financial institutions to explore crypto-related financial products.
Commodities vs. Security Debate
Despite growing interest in XRP, an ongoing legal battle between blockchain payments company Ripple and the SEC has cast a shadow over the approval process for a similar XRP ETF.
Classifying XRP as a commodity or a security remains controversial, with the latter designation posing significant hurdles to regulatory approval.
In a positive development for the potential of a Litecoin ETF, the U.S. Commodity Futures Trading Commission (CFTC) referred to Litecoin as a commodity in its complaint against KuCoin earlier this year.
This designation could make the approval process for the proposed Spotlight Coin ETF smoother, as commodities generally have lower regulatory hurdles than what the SEC considers to be “securities.”
The daily chart shows LTC’s price reaction to ETF filings. Source: LTCUSDT on TradingView.com
At the time of writing, LTC has risen more than 3% to its current trading price of $68.73, and briefly soared to just above $70 after the filing was announced.
Featured image from DALL-E, chart from TradingView.com
