Canary Capital has revealed plans to launch a Litecoin-focused product just one week after filing for an ETF to directly hold Ripple’s XRP token.
The asset manager’s proposed Canary Litecoin ETF “holds LTC and establishes its net asset value each business day by reference to the CoinDesk Litecoin Price Index,” the asset manager said in Tuesday’s filing.
Litecoin turned 13 on Sunday. According to CoinGecko data, LTC has a market capitalization of approximately $5.3 billion, the 27th highest among crypto tokens.
“As one of the longest-running blockchains with 100% uptime since its inception, Litecoin has a proven track record of security and reliability in critical enterprise-grade use cases,” Canary said. a spokesperson said in an email. “Due to its strong foundation, Litecoin continues to play a leading role in the broader crypto ecosystem, which could make it attractive to a broader range of institutional investors. I believe in Canary.
The latest Litecoin ETF proposal follows Canary’s application to start offering Ripple (XRP). Fellow fund company Bitwise also revealed plans for a similar XRP product just a few days ago.
Read more: Election results and SEC lawsuit that will determine the future of XRP ETFs
These XRP filings follow VanEck and 21Shares’ filing to launch an ETF that directly holds Solana (SOL).
The Securities and Exchange Commission must approve these proposals before an ETF can be launched, a process that typically takes several months.
U.S. regulators approved Spot Bitcoin and Ether ETFs in January and July, respectively, but industry insiders say product plans focused on crypto assets other than BTC and ETH face hurdles in the short term. He says he may face it.
Read more: XRP ETF filing: Sign of regulatory progress or wishful thinking?
For example, the SEC has historically wanted to first consider regulated futures markets for the underlying assets of spot crypto ETFs like Bitcoin and Ether. Not present in LTC, XRP, SOL.
Still, a Canary Capital spokesperson told Blockworks earlier this month that there are “encouraging signs of a more flexible regulatory environment.”
“Following the previous Spot Bitcoin ETF approval, this year’s Spot Ethereum ETF approval shows positive momentum, especially considering how long it took for the ETH futures product to be approved. ” added the representative. “We are optimistic about the next stage of development in this area.”
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