On January 30, 2025, the U.S. Securities and Exchange Commission (SEC) acknowledged Canary Capital's proposal for a Litecoin ETF, marking a significant milestone as the first altcoin ETF filing to receive such recognition.
Bloomberg analyst Eric Balchunas noted this development as a sign of progress in regulatory compliance. The Litecoin ETF aims to provide investors with easier access to Litecoin through standard brokerage accounts, eliminating the complexities of digital wallets.
Canary Capital filed its S-1 registration in October 2024, just days after applying for an XRP-based ETF. The SEC's review process could take up to 240 days, with speculation on whether a quicker approval might occur.
This move follows the approval of spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May 2024, indicating a more favorable regulatory environment for cryptocurrency investment products.
The proposed ETF will track the CoinDesk Litecoin Price Index (LTX) and utilize a custody framework to hold Litecoin, allowing Authorized Participants to create and redeem ETF shares through a cash-only system.