Canary Capital Group has filed to launch an exchange-traded fund to track the price of Litecoin. The company, founded by former Valkyrie Funds co-founder Stephen McClurg, is the first company to apply for such a fund. The current filing form is that the S-1 filing is the first step, but it is meaningless unless it is followed by a 19b-4 filing.
Canary Capital Group, a new investment firm focused on digital assets founded by former Valkyrie Funds co-founder Stephen McClurg, is not a follower of crypto exchange traded funds (ETFs), but a world leader. It seems like he wants to be.
The company filed paperwork on Tuesday to launch the Canary Litecoin (LTC) ETF.
This token is the native cryptocurrency of Litecoin, an open-source blockchain project whose code was copied from Bitcoin. Several non-native ETF issuers have launched crypto funds this year, but this is the first filing for a fund tied to LTC.
For Canary, which is only about a month old, this is the second ETF the company plans to launch since filing documents for an XRP fund with the Securities and Exchange Commission (SEC) a week ago.
Neither filing has yet disclosed potential fund management fees or tickers.
The company filed an S-1 document on Tuesday, a requirement for companies seeking to issue new securities and list on public stock exchanges. This is one of two applications required to launch an exchange-traded product.
This filing is considered the first step in introducing the fund, but it is meaningless unless it is followed by a 19b-4 filing that changes the rules of the stock exchange on which the fund is traded.
The latter does not require regulators to respond to S-1 filings, although the SEC must adhere to strict timelines when approving or denying applications.
LTC surged 5% on the news of the filing, trading at $66.46 at the time of the price.
