Canary Capital submits S-1 form for Litecoin exchange-traded fund

Asset manager Canary Capital has submitted registration documents for a spot Litecoin (LTC) exchange-traded trust (ETF) with U.S. regulators, as per filings on Oct. 15.

This filing is part of a trend where there are many proposed ETFs featuring alternative cryptocurrencies before the US presidential election in November.

Canary’s proposed ETF plans to hold spot LTC and closely track the performance of the CoinDesk Litecoin Price Index (LTX), according to the documents.

Litecoin is a decentralized peer-to-peer digital currency known for being a faster and cheaper alternative to Bitcoin (BTC) for small payments.

Canary also filed for a proposed spot XRP ETF on October 9, following in the footsteps of Bitwise, who tried to register a similar ETF with the SEC.

Nate Geraci, president of financial advisory firm The ETF Store, sees this move as a short-term option influenced by the November election but believes it is inevitable in the long run.

The XRP token was released by Ripple, a crypto payment protocol, in 2012 and has been the subject of a lawsuit filed by the SEC in 2020.

Filing the S-1 registration form is the initial step towards launching an LTC ETF, but Canary must wait for the SEC to review the documents and approve a rule change to list the proposed ETF.

Vice President and presidential candidate Kamala Harris is viewed as more favorable towards cryptocurrency than President Joe Biden, but not as pro-industry as former President Donald Trump, according to Galaxy Research.

Under Biden, the SEC has taken a strict regulatory stance on crypto, resulting in over 100 regulatory actions against the sector.

Harris has started to focus on blockchain technology in various emerging sectors to keep the U.S. competitive, indicating a slightly more constructive approach than Biden according to Galaxy Research.

SOURCE

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top