SEC Accepts Nasdaq’s Application for a Litecoin ETF by Canary - Cryptol

The U.S. Securities and Exchange Commission (SEC) has officially accepted Nasdaq’s 19b-4 filing, paving the way for a spot Litecoin ETF by Canary Capital.

First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown. https://t.co/iXwq9PkLGr
— Eric Balchunas (@EricBalchunas) January 29, 2025

The agency has opened a 21-day public comment period following the filing’s publication in the Federal Register.

Canary originally filed an S-1 registration statement for an LTC ETF in October 2024. According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the SEC has begun discussions on the proposal, with the company actively adjusting its filing to meet regulatory requirements.

For the ETF to launch, both the S-1 registration and the 19b-4 rule change must be approved. However, the 19b-4 filing starts the official countdown for the SEC’s final decision.

“The question now is whether the SEC will take the full 240 days or approve it faster. That remains uncertain,” Balchunas noted.

He emphasized that among all potential altcoin ETF issuers, Canary is the furthest ahead in the process.

Market Reaction

Litecoin’s price surged over 13% in the past 24 hours, significantly outpacing Bitcoin’s 2.6% gain and the overall crypto market’s 0.7% growth.

Other Altcoin ETF Filings

At least five Solana ETF proposals are pending at the SEC from VanEck, 21Shares, Canary, Bitwise, and Grayscale.

In November, 21Shares and Bitwise filed for spot XRP ETFs, while Bitwise took steps toward a DOGE ETF in January 2025.

Outlook

Industry experts are increasingly optimistic about the approval of new crypto ETFs in the U.S., pointing to regulatory shifts and the departure of SEC Chair Gary Gensler as positive signals for the market.