SEC Acknowledges Canary Capital’s Litecoin ETF Filing, Paving the Way for Potential Approval

The U.S. Securities and Exchange Commission (SEC) has acknowledged Canary Capital’s Litecoin ETF filing, bringing the possibility of the first altcoin ETF outside of Bitcoin and Ether one step closer to reality.

SEC Review Process Begins

The SEC, under the leadership of Acting Chairman Mark Uyeda, has formally acknowledged the Litecoin ETF filed by Canary Capital on January 29. This marks the beginning of the official review process, which will consider market risks, investor protections, and compliance with financial rules.

A 19b-4 filing, submitted by Nasdaq, is a formal request to the SEC to request rule changes, such as listing new financial products like a crypto ETF. According to Bloomberg ETF analyst James Seyffart, the SEC is currently reviewing the application.

Can confirm. @CanaryFunds’ Litecoin ETF 19b-4 filing has been acknowledged by the SEC (As expected)

What’s Next for the Litecoin ETF?

While this is not a formal approval from the SEC, the LTC ETF is now one step closer to possible approval. The SEC will open a public comment period, have several review phases to complete, and can approve, reject, or postpone the decision for up to a combined 240 days.

Eric Balchunas, Senior ETF Analyst at Bloomberg, notes that the LTC ETF has received temporary acknowledgement, setting it apart from other filings. He also highlights that the SEC will consider various factors before rendering a decision.

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.

What is an ETF and How Does it Work?

An ETF (Exchange-Traded Fund) is a collection of assets for sale on the stock market, similar to ordinary stock. Rather than buying individual assets, such as gold, Bitcoin, or Litecoin, an ETF offers investors a fair share of a fund that owns these assets.

Implications for the Crypto Market

Industry observers are anticipating this to be the first ETF approval in 2025, signaling a major change in what U.S. crypto investment products would look like throughout the year. If approved, the Litecoin ETF could pave the way for other altcoin ETFs and expand investment opportunities in the crypto market.

Key factors to consider:

• Market risks: The SEC will assess the potential risks associated with the Litecoin ETF and its impact on the market.
• Investor protections: The SEC will evaluate the measures in place to protect investors and ensure their interests are safeguarded.
• Compliance with financial rules: The SEC will review the Litecoin ETF’s compliance with existing financial regulations and rules.

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