Michaela
The U.S. Securities and Exchange Commission (SEC) has formally acknowledged Canary Capital’s 19b-4 filing for a Litecoin exchange-traded fund (ETF), marking a step forward in the approval process. However, the agency has yet to take action on most other altcoin ETF proposals.
Canary Capital’s Litecoin ETF is the first altcoin fund, aside from Ethereum, to receive this acknowledgment from the SEC. This development sets a regulatory deadline for the Commission to either approve or reject the proposal. If approved, the ETF could significantly reshape how investors gain exposure to cryptocurrencies.
Litecoin has long remained in the shadow of Bitcoin and Ethereum, with most public attention and investment flowing toward the two dominant cryptocurrencies. However, analysts Eric Balchunas and James Seyffart believe Litecoin’s proposed ETF stands a stronger chance of approval compared to other altcoins like Solana or XRP.
Balchunas previously noted that regulators may view Litecoin more favorably than other altcoins, considering its origins as a Bitcoin fork. This connection potentially positions Litecoin as a “commodity,” which could increase its likelihood of receiving ETF approval.
“It’s the altcoin 19b-4 to be acknowledged; the rest were told to withdraw by Gensler’s SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. The question now is will this SEC wait the full 240 days or approve more rapidly,” Balchunas wrote in a post on X.
The SEC’s recent acknowledgment of the Litecoin ETF filing suggests a growing willingness to engage with altcoin proposals. This development has fueled speculation that approval could pave the way for similar cryptocurrency investment products in the future.
Moreover, speculation surrounding the potential approval of the ETF has influenced Litecoin’s market performance. Following Nasdaq’s initial filing of the 19b-4 form, the cryptocurrency’s price surged by 12%, reflecting growing investor optimism.
While the SEC’s acknowledgment of Canary Capital’s Litecoin ETF filing is a significant step, it does not ensure approval. Since former chair Gary Gensler’s resignation, a wave of ETF applications has flooded the SEC, with many facing slim chances of success.
The agency’s handling of these proposals will be a crucial indicator of its stance on broader altcoin ETFs. Even if some gain approval, there is no guarantee the SEC will greenlight all applications, suggesting a selective approach to regulatory acceptance in the evolving crypto landscape.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
