Canary Capital, a US-based asset management company, has applied to list a Litecoin spot exchange-traded fund (ETF). The company named the product the Canary Litecoin ETF, according to a Form S-1 filing with the U.S. Securities and Exchange Commission (SEC).
Litecoin ETF: Can it make a difference?
One reason most people don’t know is that Litecoin is rarely considered a security by the US SEC. In particular, digital currencies are one of the oldest assets in the industry with complete utility. This effort for an LTC ETF product is the first to be filed in the United States.
Canary Capital values Litecoin as an asset. The company reiterated in its S-1 filing that Litecoin is one of the longest-running blockchains with 100% uptime. We believe that Litecoin provides investors with access to enterprise-grade use cases.
The Litecoin ETF push follows the XRP ETF application filed by Canary Capital earlier this month. This product increases the number of digital currencies that are directly linked to regulated funds.
First, 21Shares and VanEck filed for a Solana ETF with the US SEC earlier this year. Although both applications have been removed from the Cboe website, they remain of interest to supporters of the digital currency ecosystem.
In particular, it is considered unlikely that these products will be approved until a Litecoin ETF is added to the list. While Switzerland and Germany have existing ETP products, the only institutional LTC exposure in the US is through Grayscale. This is believed to be a stepping stone for the asset to eventually gain regulatory approval for ETF demand.
Since Litecoin is generally considered a commodity, it remains to be seen how the US SEC will approach the application from Canary Capital’s application.
Impact on LTC
Litecoin is one of the pioneering proof-of-work (PoW) assets, but its influence has waned in recent years. Notably, this coin recently celebrated its 13th anniversary. Nevertheless, the coin lost ground to new projects as its price fell more than 83% from its all-time high of $412.96.
The impact of Litecoin ETF products is already being felt, with LTC price jumping 6.5% in 24 hours to $69.70. If Canary Capital’s proposal receives clearance from the US SEC, it could trigger a new milestone for Litecoin.
Previous Litecoin price analysis suggested that the coin may finally be ready for a bull run. This ETF offering could help accelerate this price action to bring the coin back to its previous ATH.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-world applications of blockchain technology and the innovations driving public acceptance and global integration of emerging technologies. His desire to educate people about cryptocurrencies has inspired his contributions to well-known blockchain-based media and sites. Benjamin Godfrey loves sports and farming. X, Follow him on Linkedin
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