Litecoin ETF Moves Closer to Reality with Amended SEC Filing, LTC Jumps 16%
TL;DR
Litecoin (LTC) surged 16.4% to $117 following Canary Capital’s amended S-1 registration form for a Litecoin ETF with the SEC.
The filing includes updates on custodial agreements with Coinbase Custody Trust and BitGo, indicating active SEC review.
Analysts suggest the amendment shows SEC engagement, but caution that the approval process is still in its early stages.
Litecoin (LTC) has recently experienced a significant surge in its price, driven by growing optimism surrounding the potential approval of a Litecoin ETF. Canary Capital’s recent amendment to its S-1 registration form with the U.S. SEC has sparked excitement in the crypto market, leading to a notable increase in LTC’s value.
NEW: @CanaryFunds just filed an amended S-1 for their Litecoin ETF filing. No guarantees — but this might be indicative of SEC engagement on the filing. Still no 19b-4 filing yet though
— James Seyffart (@JSeyff) January 15, 2025
(A 19b-4 would actually start the potential approval/denial clock) h/t @isabelletanlee pic.twitter.com/wFtNOmbmYx
The Amended SEC Filing
On January 15, 2025, Canary Capital filed an amended S-1 registration form for its proposed Litecoin ETF. This amendment is seen as a crucial step toward gaining regulatory approval from the SEC.
The filing includes updates on agreements with custodians Coinbase Custody Trust and BitGo, addressing custodial arrangements to meet SEC standards. While the amendment itself does not guarantee approval, it indicates that the SEC is actively reviewing the proposal.
The news of the amended filing has had an immediate impact on Litecoin’s price. Following the announcement, LTC surged by 16.4%, reaching $117. This price jump reflects the market’s optimism about the potential approval of the ETF and the positive sentiment surrounding Litecoin’s future prospects.
Analyst Insights
Bloomberg ETF analysts Eric Balchunas and James Seyffart have weighed in on the development, suggesting that the amendment could be indicative of SEC engagement with the filing.
Balchunas noted that the SEC’s feedback on the S-1 form bodes well for the likelihood of Litecoin becoming the next cryptocurrency to receive ETF approval. However, both analysts caution that the approval process is still in its early stages, and a formal 19b-4 filing is required to start the official clock for the SEC’s decision.
Leadership Transition at the SEC
The timing of the Litecoin ETF’s approval process could be influenced by upcoming changes in SEC leadership. Gary Gensler, the current SEC chair, is set to step down, and former SEC commissioner Paul Atkins, known for his pro-crypto stance, has been nominated to lead the agency. This leadership transition introduces a significant variable that could impact the regulatory outlook for the Litecoin ETF.
Filed under: News - @ January 16, 2025 12:22 pm