Litecoin ETF May Be Next as SEC Engages with Canary Funds’ Filing
With U.S. President-elect Donald Trump just days away from his inauguration and a leadership change at the Securities and Exchange Commission (SEC), the possibility of additional cryptocurrencies joining bitcoin (BTC) and ether (ETH) in receiving spot exchange-traded funds (ETFs) is becoming more likely.
Litecoin (LTC), in particular, appears to be in the running to be the next cryptocurrency approved for an ETF. According to Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence, Canary Funds has recently amended its S-1 filing for a litecoin ETF, which could be an indication that the SEC is engaging with the filing.
On X, Seyffart noted, “Canary Funds just filed an amended S-1 for their litecoin ETF filing. No guarantees, but this might be indicative of SEC engagement on the filing.”
Balchunas added that they had heard chatter about the litecoin S-1 receiving feedback from the SEC, and the amended filing is a positive signal for their prediction that litecoin could be the next cryptocurrency to receive ETF approval.
Further solidifying the potential for a litecoin ETF is the Nasdaq stock exchange’s recent submission of a 19b-4 form for Canary Funds’ litecoin ETF, which requires the SEC to make a decision within the coming year. Litecoin saw an 18% increase in the past 24 hours, reflecting growing optimism.
Why Litecoin? Despite being the 11th-largest cryptocurrency with a market cap of $8.8 billion, litecoin is still smaller than many others in the market. However, its similarities to bitcoin, such as its Proof-of-Work consensus mechanism, give it an advantage in terms of regulatory acceptance. The SEC has never classified litecoin as a security, unlike Solana (SOL) and Ripple (XRP), which are currently facing legal scrutiny over security classification.
Balchunas had predicted in December that litecoin would likely be the next coin approved for an ETF, following bitcoin and ether combo ETFs. After that, other cryptocurrencies like HBAR may also gain approval, while coins like XRP and Solana might face delays due to ongoing legal battles.
Under the leadership of Paul Atkins, the SEC is expected to take a different approach to cryptocurrency regulation compared to the tenure of Gary Gensler, which could influence the approval process for these ETFs.
