Nasdaq Files for ‘Canary Litecoin ETF’ SEC Approval
- Nasdaq has submitted a 19b-4 form for the proposed Canary Litecoin ETF.
- The SEC requested Canary Capital to amend the S-1 form of the proposed Litecoin ETF.
- The initial filing for the Canary Litecoin ETF was made in October 2024.
Nasdaq has taken a significant step by filing a 19b-4 form for the proposed ‘Canary Litecoin ETF,’ marking the beginning of the US Securities and Exchange Commission (SEC) review process.
Administering the Canary Litecoin ETF
The 19b-4 form, submitted recently, reveals that US Bancorp Fund Services, LLC will serve as the ETF’s administrator, while US Bank N.A. will manage the fund’s cash assets. The custody of the actual Litecoin for the ETF will be overseen by Coinbase Custody Trust Company LLC.
Growing Trend of Crypto ETFs
Nasdaq and Canary Capital’s move is part of a broader trend where numerous firms are advocating for spot ETFs based on different cryptocurrencies like Solana and XRP. This comes amidst speculation that the upcoming administration could be more lenient towards crypto regulations.
The SEC’s approval of Bitcoin ETFs in January 2024 and Ethereum ETFs later that year has opened doors for other crypto-based financial products.
Outlook and Challenges for the Litecoin ETF
Bloomberg Senior ETF Analyst Eric Balchunas is optimistic about the Litecoin ETF’s approval prospects, citing positive feedback from the SEC on the S-1 form. However, the change in SEC leadership could introduce uncertainties.
Canary Capital’s initial filing for the Litecoin ETF in October 2024 initiated this regulatory journey, with the focus now shifting to the SEC for further evaluation.
This filing signifies a critical milestone in potentially introducing Litecoin to mainstream investors through a regulated financial product, showcasing the increasing convergence of traditional finance and the digital asset space.