Litecoin ETF Likely Next Spot Crypto ETF to Get SEC Nod; Bloomberg Analyst

A Litecoin ETF often is the subsequent cryptocurrency ETF to be permitted in the USA given the present circumstances. Bloomberg Senior ETF Analyst Eric Balchunas made this prediction after Canary Capital filed an amended S-1 registration kind in relation to its Litecoin ETF proposal.

Amended Litecoin ETF S-1 Submitting Suggests SEC Engagement

Canary Capital had submitted the S-1 registration kind for the Litecoin ETF with the U.S. Securities and Alternate Fee (SEC) in October 2024. On Wednesday, the corporate filed an amended model of this manner. Based on the submitting, U.S. Bancorp Fund Companies would act because the administrator of the ETF, whereas Coinbase Custody Belief and BitGo would act because the custodians for the Litecoin of the fund.

NEW: @CanaryFunds simply filed an amended S-1 for his or her Litecoin ETF submitting. No ensures — however this is perhaps indicative of SEC engagement on the submitting. Nonetheless no 19b-4 submitting but although

(A 19b-4 would truly begin the potential approval/denial clock) h/t @isabelletanlee pic.twitter.com/wFtNOmbmYx

— James Seyffart (@JSeyff) January 15, 2025

Among the trade watchers together with the Bloomberg analysts have urged that that the modification of the submitting may very well be a sign of SEC’s curiosity. One other Bloomberg ETF analyst, James Seyffart identified that the modification might imply the SEC has provided feedback on the appliance. Nevertheless, there was no 19b-4 submitting made, which is a proper utility for rule change that initiates the approval course of.

“We had heard chatter that the Litecoin S-1 had gotten feedback again from [the] SEC,” mentioned Balchunas in a publish on X (previously Twitter). He additionally mentioned that that is according to his earlier declare that Litecoin is ‘most definitely’ to be the subsequent cryptocurrency ETF in the USA.

New SEC Management Provides Uncertainty

The timing of the Litecoin ETF’s approval course of might depend upon upcoming adjustments in SEC management. Gary Gensler, the present SEC chair, is ready to step down on Monday. Former SEC commissioner Paul Atkins, who has expressed help for the cryptocurrency sector previously, has been nominated to steer the company.

Nevertheless, the Senate has but to verify Atkins’ appointment, and the precise timeline stays unsure.

Balchunas emphasised that the management transition is a “large variable” within the approval course of for the Litecoin ETF.

Rising Curiosity in Spot Crypto ETFs

Created in 2011 as a extra environment friendly model of Bitcoin, Litecoin is likely one of the oldest and most secure blockchains. Following the announcement, the worth of Litecoin spiked by greater than 18% to commerce at $119.46 on the time of writing.

Analysts imagine that the present bullish rally might break by means of the $130 barrier, with the LTC price prediction standing at $170. As well as, open curiosity elevated by 29.58% to $575.39 million inside the final 24 hours whereas the buying and selling quantity jumped considerably by 277.25% to $1.65 billion.

This pleasure comes within the wake of the latest approval of U.S. spot Bitcoin and Ethereum ETFs in latest months. These merchandise outperformed the market, which led to the expansion of curiosity amongst issuers within the creation of ETFs for altcoins like Solana and XRP.

A latest JPMorgan and Hashkey research be aware urged that new Solana and XRP ETFs might pull in $13.6bn of recent funds if they’re permitted inside six to 12 months. The introduction of altcoin ETFs corresponding to Litecoin can also contribute to elevated institutional investments within the cryptocurrency house.

Subsequent Steps for Litecoin ETF Approval

Despite the fact that the amended S-1 submitting marks a progress, there isn’t a certainty as to when the approval of the Litecoin ETF will probably be accomplished. The submission of a 19b-4 utility would formally kick off the SEC’s resolution course of however Canary Capital has not given any indication of when this could occur.

The unique submitting of Canary recognized Litecoin as a blockchain that has had “100% uptime since its inception” noting its safety and stability as strengths. Trade individuals are actually targeted on the subsequent steps, such because the SEC’s response and the doable 19b-4 submitting, because the momentum for the approval of the Litecoin ETF picks up.