Nashville-based asset supervisor Canary Capital has filed a Kind S-1 for a Litecoin (LTC) exchange-traded fund (ETF) with the The US Securities and Trade Fee (SEC), October 15.
Canary's submitting is the primary submitting for a Litecoin-linked spot ETF in the US and comes lower than per week after the asset supervisor's XRP ETF. deposit on October 8.
Canary Capital CEO and founder Steven McClurg was beforehand chief funding officer of Valkyrie Investments, having co-founded the asset supervisor with Leah Wald.
Completely different from Solana ETF deposits
Alex Thorn, head of analysis at Galaxy Digital, mentioned CryptoSlate that Litecoin is mostly thought of a “honest launch”, that means there was no pre-mining or token sale.
Moreover, since Litecoin relies on a consensus proof-of-work mannequin, no entity has provided LTC to public or personal traders. Thorn added:
“The SEC has not expressed its place on the matter, however it’s unlikely that Litecoin might be thought of to have been provided as a safety since there was no providing. Thus, issuers ought to theoretically have the identical pathway to launch spot Litecoin ETFs in the US as they do for Bitcoin.
Based on Thorn, the identical can’t be mentioned for the spot Solana ETFs since blockchain are based mostly on a proof-of-stake consensus algorithm and have performed a token sale.
Thorn mentioned this makes the factual mannequin of Solana's preliminary launch completely different from Bitcoin and Litecoin. Moreover, the SEC at present alleges in its lawsuit towards Coinbase that SOL is “crypto asset safety”.
Thorn mentioned:
“(This) is why some analysts have prompt that SOL ETF filings are bets on a Trump victory in November, as a change within the SEC's strategy to classifying crypto belongings as securities could be doubtless needed earlier than the company approves the itemizing of SOL ETFs.”
Market dominated by Grayscale
Based on Bloomberg ETF analyst James Seyffart, ETPs like CoinShares LIGHT in Switzerland and the ETC Group ELTC in Germany, we already maintain Litecoin. In the meantime, the US market is at present solely operated by the Grayscale Litecoin Belief (LTCN).
Based on a CoinShares reportLTC funds provided in Europe maintain $11.5 million in mixed belongings underneath administration (AUM), which represents lower than 10% of the entire AUM of Litecoin-related ETPs worldwide.
In the meantime, LTCN has $127.4 million in belongings underneath administration, accounting for the remaining 93% of the cash invested in Litecoin-related ETPs globally.
