Asset management company Canary Capital has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to introduce the first SpotlightCoin ETF in the United States.
The company announced the development on Tuesday, highlighting Litecoin’s potential as a “unique and attractive investment opportunity,” according to a statement.
Litecoin price rise, Source: CoinMarketCap
Following the announcement of the ETF filing, Litecoin (LTC) saw a positive price reaction, rising over 3% to $69.16 and briefly soaring above $70.
Canary Capital highlights that Litecoin has an outstanding track record of maintaining 100% occupancy since its inception, which it believes makes it well-positioned for institutional investors seeking exposure to cryptocurrencies. I did.
Canary Capital claims that Litecoin has emerged as a leader in real-world payments through its collaboration with BitPay, one of the largest crypto payment processors. This partnership highlights Litecoin’s growing utility and appeal in commerce and strengthens the company’s confidence in launching a Litecoin ETF.
Canary Capital has submitted a proposal for an XRP ETF in addition to the Litecoin ETF. This shows a trend of increasing institutional interest in cryptocurrency investments. The filing, in line with a recent filing from investment firm Bitwise, shows that financial institutions are increasingly interested in investigating financial products related to cryptocurrencies.
However, an ongoing legal dispute between the SEC and blockchain payments provider Ripple has complicated the approval process for XRP ETFs. There is still debate as to whether XRP should be classified as a security or a commodity, with the latter facing significant regulatory hurdles.
Meanwhile, the U.S. Commodity Futures Trading Commission (CFTC), which described Litecoin as a commodity in its complaint against KuCoin earlier this year, has recently provided positive indicators for the Litecoin ETF.
Commodities typically face fewer regulatory hurdles than what the SEC deems “securities,” so the proposed Spotlightcoin ETF could be more easily approved thanks to this category.
With interest in cryptocurrency investment products on the rise, the launch of the first Spotlight Coin ETF could be a pivotal moment for institutional investor participation in the digital asset space.
Also read: Litecoin celebrates 13th anniversary, leading global crypto payments
