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Litecoin briefly rose above $70 after Canary Capital filed for a Litecoin ETF with the SEC. Given that the SEC considers most crypto assets to be securities, it remains unclear whether ETFs will get the green light.
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Litecoin (LTC) briefly rose 10% to $70.8 after crypto-focused investment management firm Canary Capital formally submitted its application for the proposed Spot Litecoin ETF. Ta.
Canary’s application makes it the first entity to seek approval for an ETF that tracks the spot price of LTC, which currently ranks 27th among crypto assets by market capitalization, according to CoinGecko data.
Over the past seven days, LTC has risen more than 7%, with Bitcoin approaching $68,000, as bulls dominate the crypto market. However, LTC is still more than 80% below its all-time high and still has some distance to cover.
Following the sudden rally, the crypto asset retreated to around $69.5, but is still recording gains over the past 24 hours.
Prior to the proposed Litecoin ETF, Canary filed for approval of an XRP ETF with the SEC earlier this month.
Litecoin and XRP are also among the crypto assets offered by Grayscale through the Grayscale Litecoin Trust (LTCN) and Grayscale XRP Trust (XRX).
Founded in 2018, Litecoin Trust allows investors to gain exposure to LTC price movements without the complexity of purchasing, storing, and securing crypto assets directly. XRP Trust just debuted last month.
Canary’s application comes at a time of growing interest in cryptocurrency investing, especially after the successful launch of Spot Bitcoin and Ethereum ETFs in the US. If a new ETF is approved, it could increase liquidity and make the prices of the underlying assets more stable.
The company wants to diversify its crypto-related offerings, but given that regulators consider most crypto assets, with the exception of Bitcoin and Ethereum, to be securities, it remains to be seen if they can get SEC approval. This remains a big question.
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