Canary Capital has made significant progress with the filing of the No. 1 Litecoin ETF application with the U.S. SEC on October 15, 2024.
This ETF aims to provide investors with direct exposure to LTC through spot LTC holdings and tracking CoinDesk LTX. If accepted, institutional and individual investors will be able to purchase Litecoin without having to purchase and hold the actual cryptocurrency.
This is considered a good thing for Litecoin. This filing is already impacting the market as the price of Litecoin is increasing. LTC was trading above $71 on Wednesday after rising 6% on Tuesday. The announcement of the ETF filing boosted investor confidence and contributed to the cryptocurrency’s upward trend.
Canary Capital Chief Executive Officer Steven McClurg will lead the effort. One of McClurg’s most notable accomplishments is co-founding Valkyrie Funds, which issues the Coinshares Valkyrie Bitcoin Fund ETF. Due to his ability to offer creative investment methods, the cryptocurrency world is eagerly awaiting Canary’s application.
Why is this important? ETFs are a financial product that has the potential to make Bitcoin investing mainstream. Traditional investors can gain exposure to Litecoin through ETFs without having to handle or store digital assets themselves. This is considered to be a more convenient and secure method of cryptocurrency investment. In the long term, Litecoin’s legitimacy and liquidity may also be strengthened.
Canary Capital has filed its first Form S-1 for the LTC ETF with the U.S. Securities and Exchange Commission (SEC). If approved, the ETF would provide broad direct exposure to both consumers and institutional investors. #litecoin ‘ $LTC ⚡️https://t.co/ob3heK7dFS pic.twitter.com/IfjcdCPle6
— Litecoin Foundation ⚡️ (@LTCFoundation) October 15, 2024
According to Bloomberg analyst James Seifert, the Grayscale Litecoin Trust (LTCN ) is said to have a monopoly on the US market. Grayscale currently has $127.4 million in assets under management in LTC, representing a significant portion of global investments in Litecoin-related products. In contrast, the European product has total assets under management of just $11.5 million. Therefore, Canary’s debut in the US market could pose a threat to Grayscale’s hegemony.
Litecoin’s proof-of-work consensus method and history of “fair launches” set it apart from other cryptocurrencies like Solana, said Alex Thorne, head of research at Galaxy Digital. . Thorne believes Litecoin has a better chance of being approved as an ETF than Solana’s spot ETF application, but because there was no token sale or pre-trading, it is less likely that the SEC would classify it as a security. , may encounter regulatory hurdles. -my.
What’s interesting is that Canary took this action just days after filing an application for an XRP ETF on October 8th. Analysts have speculated that the SEC’s position on cryptocurrency regulation may be influenced by the US presidential election in November, with some experts concluding that these actions will: I’m wearing it. Submission is intentional. A possible change in leadership may create a more welcoming atmosphere for crypto investing.
According to a Gemini survey earlier this year, 73% of crypto holders said a candidate’s stance on crypto influences their vote.
Does it affect you too? pic.twitter.com/lHf9bxyxth
— Nick (@nicrypto) October 16, 2024
Canary Capital’s filing for the first Litecoin Spot ETF could help the crypto market in the long run by allowing more investors to participate in this expanding market.
