- The SEC’s recognition of Canary Capital’s Litecoin ETF filing brings LTC one step closer to becoming the first altcoin ETF beyond Bitcoin and Ethereum, triggering a 13% price surge.
- While not an official approval, the move signals a potential shift in U.S. crypto regulations, with a final decision expected within 240 days.
Litecoin (LTC) surged 13.2% after the U.S. Securities and Exchange Commission (SEC) acknowledged Canary Capital’s Litecoin ETF filing, marking a significant step toward potential approval. This move could pave the way for the first altcoin ETF outside of Bitcoin (BTC) and Ethereum (ETH), a development that could reshape the cryptocurrency investment landscape.
SEC Formally Acknowledges Litecoin ETF Filing
On January 29, under Acting Chairman Mark Uyeda, the SEC officially recognized the 19b-4 application submitted by Nasdaq for Canary Capital’s Litecoin ETF. Bloomberg ETF analyst James Seyffart confirmed this significant development on X, explaining that the filing requests a regulatory rule change to allow Litecoin to be listed as a financial product on the stock market.
Can confirm. @CanaryFunds’ Litecoin ETF 19b-4 filing has been acknowledged by the SEC (As expected) https://t.co/1UFEoDUS3H pic.twitter.com/4u57QofXK8
— James Seyffart (@JSeyff) January 29, 2025
Canary Capital originally filed for the Litecoin ETF on January 16. According to reports, under former SEC Chair Gary Gensler, the agency allegedly discouraged companies from applying for altcoin ETFs, forcing them to withdraw applications before any formal review. However, with Gensler out, the SEC has now moved forward with the LTC ETF rather than rejecting or delaying its acknowledgment, signaling a shift in the regulatory approach.
What’s Next for the Litecoin ETF?
Although the SEC’s acknowledgment is not an official approval, it is a crucial first step. The agency will now formally begin reviewing the application, assessing factors such as market risks, investor protections, and compliance with financial regulations.
Bloomberg Senior ETF Analyst Eric Balchunas highlighted that the SEC will initiate a public comment period and go through multiple review phases before making a decision. The commission can approve, reject, or delay the decision for up to 240 days. While no other altcoin ETF filings have received such recognition, this move suggests that a new wave of crypto investment products may emerge in 2025.
Notably, ETFs function as a collection of assets that trade on stock exchanges, allowing investors to gain exposure to assets like Litecoin without directly purchasing them. If the LTC ETF is approved, it could provide institutional investors with a regulated avenue to invest in Litecoin, increasing liquidity and driving adoption.
The market has responded positively to the news, with Litecoin’s price jumping over 13% in a matter of hours. Industry experts anticipate that the first altcoin ETF approval in 2025 could set a precedent for additional crypto ETFs beyond Bitcoin and Ethereum.
With the SEC now actively reviewing the Litecoin ETF, investors are eagerly watching for further developments. If approved, this could mark a turning point for altcoin ETFs, potentially unlocking new opportunities in the crypto market.