Nasdaq took a key step towards itemizing Canary Capital’s spot Litecoin ETF by submitting a Kind 19b-4 with the Securities and Change Fee, beginning the regulatory assessment clock for what may grow to be the subsequent cryptocurrency exchange-traded fund.
The transfer alerts a possible enlargement of the cryptocurrency ETF panorama past bitcoin and Ethereum, with Litecoin—a digital asset recognized for sooner transaction speeds and decrease prices—which is positioned as the subsequent candidate for SEC consideration.
Canary Capital filed an amended S-1 registration assertion Wednesday, prompting Bloomberg ETF analyst James Seyffart to be aware on X that whereas this advised SEC engagement, a 19b-4 submitting could be wanted to start out the approval course of. Hours later, Nasdaq submitted that crucial submitting.
“We had heard chatter that the Litecoin S-1 had gotten feedback again from SEC,” Eric Balchunas, Bloomberg senior ETF analyst, wrote on X. “This seems to substantiate that which bodes nicely for our prediction that Litecoin is probably to be the subsequent coin authorised.”
Whereas J.P. Morgan analysts challenge Solana and XRP ETFs may entice between $3 billion to $8 billion of their first yr, based on a current analysis report, Litecoin gives distinctive attributes that distinguish it available in the market.
Learn Extra: JP Morgan: SEC Crypto Shift Might Usher in Solana, XRP ETPs
Created in 2011, Litecoin processes transactions roughly 4 occasions sooner than bitcoin and with decrease charges. The cryptocurrency makes use of a definite hashing algorithm that promotes extra decentralized mining in comparison with bitcoin’s system.
The proposed ETF would maintain precise Litecoin somewhat than futures contracts, with each Coinbase Custody Belief Firm and BitGo Belief Firm serving as custodians, based on the S-1 registration assertion.
Litecoin rallied over 23% over the previous 24 hours, outperforming all cryptocurrencies with market capitalizations over $9 billion throughout that interval, based on CoinMarketCap knowledge.
The timing coincides with broader modifications within the regulatory panorama, as present SEC chair Gary Gensler prepares to get replaced by Paul Atkins, who beforehand served as an SEC commissioner between 2002 and 2008.
Canary’s preliminary Litecoin ETF S-1 registration assertion submitting got here in October 2024.
