The Securities and Exchange Commission has recognized the Litecoin ETF proposal from Canary Capital, opening Public feedback because it comes closer to a possible reality for an American list.
“This is the first Altcoin ETF application that is recognized”, “Bloomberg Senior ETF analyst Eric Balchunas said On X, to note that the proposal has made the most progress when complying with the legal requirements.
Litecoin, often described as the ‘silver to Bitcoin’s Gold’, could represent a logical next step, given the long operational history and similarities with the structure of Bitcoin.
The investment management and consultancy firm submitted his S-1 registration to the regulator in October and marked his intention to offer investors a unique opportunity. That came less than a week after Canary Capital applied to launch a XRP -based ETF.
The question now, Balchunas suggests, is whether the SEC will use the entire 240-day assessment period or ‘approve’ faster ‘.
It is because supervisors follow their approach to crypto investment products after the monument Approval of Spot Bitcoin ETFs in January 2024 and on it Ethereum ETFs In May last year.
Trust the process
Nasdaq submitted his application for the Spot Litecoin Fund on January 15 to a 19B-4 application, which represents the crucial second phase of the crypto ETF approval process. The exchange will act as the offer location for the proposed production product of Canary Capital.
Exchange Act Rule 19B-4 Mandates self-regulating organizations such as Nasdaq file Proceeded Rule Changes with the SEC, for which transparency and compliance with the standards for investor protection through public disclosure and comment periods ensures.
This rule is usually used for the approval of new financial products, in this case a place Crypto ETF apart from Ethereum and Bitcoin.
The process means that the market effects are considered in more detail and ensure that there are good operational guarantees before they continue with a list.
What is the Canary Litecoin ETF?
The proposed Litecoin ETF of Canary is intended to eliminate technological obstacles that have irritated historically regular investors.
Instead of struggling with digital portfolios and cryptographic tests, investors would receive litecoin busting through their standard brokerage accounts.
The Canary Litecoin ETF is designed to follow the Coindesk Litecoin Price Index (LTX) and would hold Litecoin by an extensive guardian framework.
The hybrid model also enables specialized financial companies, known as authorized participants, to create and exchange large blocks of ETF shares through an innovative system for cash only.
Instead of dealing directly with the crypto, these broker dealers would provide cash to the confidence in exchange for newly beaten shares.
Published by Sebastian Sinclair
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