SEC Advances Canary Capital’s Litecoin ETF, Approval Closer Than Ever

The U.S. Securities and Exchange Commission (SEC) has acknowledged Canary Capital’s Litecoin ETF filing, bringing the proposal closer to a potential approval. Acting Chairman Mark Uyeda confirmed that the SEC formally accepted the application, marking a shift in the agency’s approach to altcoin-based ETFs.

This development could pave the way for the first altcoin ETF beyond Bitcoin and Ethereum in the U.S. market.

SEC Accepts Litecoin ETF Filing for Review

The SEC officially acknowledged Canary Capital’s application for a Litecoin ETF, a crucial step in the regulatory process. Bloomberg ETF analyst James Seyffart confirmed that the 19b-4 application submitted by Nasdaq is now under review.

This move signals a possible shift in the SEC’s stance on crypto ETFs, as previous altcoin filings faced pressure to withdraw under former Chairman Gary Gensler.

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

With Gensler no longer in charge, the SEC’s decision to accept the filing instead of rejecting it marks a significant change. The acknowledgment does not mean approval, but it starts the formal review process.

The SEC will now assess compliance with financial regulations, investor protections, and market risks before making a decision. The SEC’s review process involves multiple stages, including a public comment period where industry experts and investors can share feedback.

Bloomberg’s Eric Balchunas stated that the review process can extend up to 240 days, during which the SEC can approve, deny, or delay the decision. Only the Litecoin ETF has received this acknowledgment, with other altcoin applications still facing regulatory hurdles.

Canary Capital submitted its filing on January 16, making it one of the first firms to pursue an altcoin ETF post-Gensler. The acknowledgment suggests the SEC is open to discussing altcoin-based ETFs rather than outright dismissing them.

Investors and market participants will closely watch how the regulatory body navigates this approval process.

Litecoin ETF Could Set Precedent for Altcoin Investments

If approved, the Litecoin ETF would provide investors with regulated exposure to LTC without directly holding the cryptocurrency. Exchange-traded funds allow investors to buy shares representing a pool of assets, making it easier to invest in digital assets through traditional stock markets.

This structure has already been successful with Bitcoin ETFs, and Litecoin could be next in line. Industry experts believe a Litecoin ETF approval could set a precedent for other altcoins seeking regulatory approval.

The SEC’s decision will likely influence future filings, shaping the landscape of crypto investment products in 2025. With the acknowledgment in place, the countdown for the SEC’s final decision has officially begun.

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