Crypto analysts speculate that Litecoin could become the next cryptocurrency to have a spot ETF in the U.S. as Canary Capital amends its recent S-1 filing. Stay tuned for further insights on this potential development!
Written by Ariela - Last updated on 01/16/2025 at 16:11 by Ariela
On January 15, Canary Capital submitted a modified version of its S-1 form to the SEC. This registration statement is a crucial step in the approval process for a Litecoin ETF.
According to experts, these modifications specifically include:
These adjustments show that Canary Capital is actively meeting the SEC’s requirements for approval. However, to further advance the process, Canary will need to file another document: Form 19b-4. This is essential to start the clock that triggers an SEC decision within 240 days of filing.
Between January 9 and 16, institutional investors and crypto whales accumulated around 250,000 LTC, amounting to almost $29 million.
These movements were detected by the blockchain analytics company Santiment. They noted that this massive accumulation coincided with a 15% increase in Litecoin’s price in 24 hours. At the time of writing, this digital asset is trading at $117.46.
This accumulation reflects a growing confidence in Litecoin’s potential. If approved, the Litecoin spot ETF could attract billions of dollars in institutional investments, following the example of BTC and ETH ETFs!
The prospect of a Litecoin ETF is emerging at a pivotal moment for cryptocurrency regulation in the United States. On January 20, the current SEC chairman Gary Gensler will be replaced by Paul Atkins, a former SEC commissioner known for his favorable stance towards crypto-assets.
This transition could signify a turning point for the crypto industry, which has often criticized Gensler for his reluctance towards cryptocurrencies.
In this regard, speculations abound. Eric Balchunas believes there could be a wave of approvals for crypto ETFs beyond Litecoin (including Solana and XRP) if Atkins pursues a more favorable approach.
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Ariela is one of the main editors of the news shared daily on InvestX. With 8 years of experience in writing, she writes articles on the topics that mark the crypto market each day.
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