- Nasdaq filed a Type 19b-4 for the proposed Canary Litecoin ETF.
- The SEC lately required Canary Capital to amend the proposed Litecoin ETF's Type S-1.
- The preliminary deposit of the Canary Litecoin ETF was made in October 2024.
Nasdaq has taken a vital step by submitting a Type 19b-4 for the proposed “Canary Litecoin ETF,” signaling the beginning of the U.S. Securities and Trade Fee (SEC) evaluation course of.
This submitting comes simply after Canary Capital amended its Type S-1, finishing the duo of paperwork required for SEC evaluation.
Type 19b-4, submitted Wednesday, signifies that US Bancorp Fund Providers, LLC will act as administrator of the ETF, with US Financial institution NA accountable for managing the fund's liquidity. Custody of the Litecoin itself for the ETF can be supplied by Coinbase Custody Belief Firm LLC.
The Canary Litecoin ETF is a part of the rising record of crypto ETFs supplied
The transfer by Nasdaq and Canary Capital is a part of a broader pattern that a number of corporations are pushing for spot ETFs based mostly on varied cryptocurrencies, together with Solana and XRP, amid hypothesis that the brand new Trump administration may very well be extra supportive of crypto regulation.
The SEC had already given the inexperienced gentle to Bitcoin ETFs in January 2024 and Ethereum ETFs later that 12 months, paving the best way for different crypto-based monetary merchandise.
Eric Balchunas, senior ETF analyst at Bloomberg, expressed optimism concerning the Litecoin ETF's prospects, telling X that the SEC's feedback on Type S-1 bode nicely for approval. Nevertheless, he additionally famous that the upcoming change on the prime of the SEC may introduce necessary variables.
Gary Gensler's time period as SEC chairman ended Monday, and President-elect Donald Trump named Paul Atkins, a former SEC commissioner recognized for his pro-crypto views, to take over. Atkins' affirmation listening to may happen in March, which may affect the regulatory local weather for cryptocurrencies.
Canary Capital's preliminary submitting for the Litecoin ETF occurred in October 2024, marking the beginning of this regulatory journey.
With Varieties 19b-4 and S-1 now in place, the main target now shifts to the SEC, the place the method will play out over the subsequent few months. This submitting is a vital step in probably introducing Litecoin to conventional buyers by means of a regulated monetary product, highlighting the rising intersection between conventional finance and the digital asset house.
