Canary Capital has officially filed an application for a Spot Litecoin ETF in the US, making it the first ETF of its kind. The company filed a Form S-1 filing with the Securities and Exchange Commission (SEC) on Tuesday, October 15th. This is because most asset management companies apply for Bitcoin, Ethereum, Solana, and XRP.
Reaction to Canary’s Litecoin ETF application
James Seifert, an ETF analyst at Bloomberg Intelligence, shared the news about X, saying, “New ETF issuer Canary (which recently applied for the Ripple XRP ETF) has just applied for a Litecoin ETF.” He further explained the company’s leadership and background. “Canary Capital was founded and is run by Stephen McClurg, who was one of the key people in charge of running Valkyrie before it was acquired by CoinShares,” the analyst said.
In a recent SEC filing, Seifert also noted that the move was made in a market where Litecoin already has a presence through European exchange-traded products (ETPs). “There are some ETPs that already hold Litecoin: $LITE from CoinSharesCo in Switzerland and $ELTC from ETC Group (now owned by Bitwise) in Germany.” He also mentioned the existing Grayscale Litecoin Trust in the US.
Canary just applied for Litecoin ETF pic.twitter.com/DJhBRQUrJe
— Eric Balchunas (@EricBalchunas) October 15, 2024
This development is significant as it will be the first ETF application in the US to focus solely on Litecoin, unlike previous applications that targeted more well-known cryptocurrencies. Eric Balciunas, senior analyst at Bloomberg ETFs, also commented on the development, saying, “It’s definitely a first-of-its-kind in the U.S., but it could also be a first-of-its-kind in the world.” 21 Sheres, who has everything under the sun, doesn’t have looks like that. ”
XRP ETF Hype
The move comes shortly after Canary Capital filed for an XRP ETF on October 8, sending ripples throughout the crypto community. It is also important to note that the company’s XRP ETF filing follows in the footsteps of Bitwise, one of the largest crypto asset management companies in this space.
Potential approval of both Litecoin and XRP ETFs could bring a new level of access to these assets and expand their reach to traditional investors.
Canary Capital’s XRP ETF filing was expected, but given that asset managers generally prioritize more popular cryptocurrencies like Bitcoin, Ethereum, and Solana, the Litecoin ETF filing is It stands out. Additionally, on the regulatory front, the SEC remains wary of such products, which could set a precedent for future crypto ETFs.
Also read: Ripple’s XRP rise to $100 is tied to platforms like SWIFT, not ETFs
