Litecoin Price Surges Amid Optimism for ETF Approval
ETF analyst James Seyffart said Canary Capital revised the S-1 filing for its Litecoin ETF, a move that signals increased involvement by the U.S. Securities and Exchange Commission (SEC).
The latest developments on a proposed Litecoin ETF have sparked optimism in the market.
Litecoin Could Be the Next Crypto ETF to Get SEC Approval
Although Seyffart noted that “there are no guarantees,” the revised filing may indicate that the SEC has begun examining the proposal more closely.
“CanaryFunds just filed an amended S-1 for its Litecoin ETF filing. There are no guarantees — but it may indicate SEC involvement in the filing. Still, no 19b-4 filing. (19b-4 actually Will start potential approval/denial clock) h/t,” Seyffart wrote on twitter January 16th.
For context, the S-1 filing is a critical step in the SEC approval process for any new investment product. While the amendment itself does not guarantee approval, it does indicate that the SEC is paying attention to the proposal.
However, as Seyffart pointed out, the 19b-4 application has not yet been filed. This is a formal request to list and trade National Stock Exchange ETFs.
The filing is critical to kicking off the official clock on when the SEC may approve or deny the ETF, meaning the process could still take some time.
Canary Capital Apply for Litecoin ETF in October last yearless than a month later It applied for XRP ETF.
Another Bloomberg analyst, Eric Balchunas, further supported the view that the SEC has begun participating in Litecoin ETF filings. Balchunas cited “chatter” suggesting the SEC has provided feedback on the S-1, which he believes strengthens the case for Litecoin to be the next cryptocurrency to receive ETF approval.
Both Balchunas and Seyffart believe that a Litecoin ETF is imminent in approval. However, they cautioned that the appointment of a new SEC chairman is a significant variable that could affect the timeline. The SEC has so far been cautious in approving cryptocurrency ETFs, with Bitcoin and Ethereum ETFs receiving some notable scrutiny.
ETF news boosts Litecoin price At press time, LTC was trading at $119.22. The cryptocurrency’s price has increased by 16.8% in the past 24 hours.
Additionally, Grayscale’s Litecoin Investment Trust already offers U.S. investors exposure to LTC through its ETP. It seems Grayscale Trust has quietly By 2024, the number of LTC will exceed 500,000.
According to Coinglass data, the trust holds less than 1.5 million LTC coins in January 2024. A year later, the investment giant’s holdings had grown to more than 2 million. Grayscale’s actions indicate The company expects strong investor interest in Litecoin.
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