n early 2024 Bitcoiners took on a huge win, with the approval of a Bitcoin ETF. Six months later, an ETH ETF was approved marking a huge milestone for the crypto community and opening the doors for investments for institutions. Today, Canary capital has made history after listing the first ever Litecoin Spot ETF application with the SEC. This comes within the backdrop of their latest filing in an XRP ETF, a clear indication of the broadening of opportunities in crypto investment and its potential.
The Litecoin Difference
What makes Litecoin’s ETF application position different from other cryptocurrencies such as Solana ETF filings is its status. Litecoin has never been involved in any of a token sale or pre-mine phase due to its fair launch and proof of work consensus as pointed by Alex Thorn of Galaxy Digital. This unique aspect is extremely important and could easily help its approach to gain approval by the SEC just like Bitcoin and ethereum in 2024.
Market Landscape
So far, Grayscale is dominating the Litecoin ETF market share, (LTCN) with more than $127 million dollars AUM. Furthermore, there are mutliple European product offerings such as CoinShares (LITE) AND ETC Group that hold approximately $11.5 million dollars in LTC, which is considerably less market size.
Regulatory Perspective
The SEC is taking a different approach regarding the approval of a Litecoin ETF compared to other digital assets such as Solana, as other digital assets face some challenges such as the possibility of being classified as a security. This in turn could benefit Canary Capital in their application and the smooth process regarding regulation.
Litecoin ETF: A Regulatory Milestone
Canary Capital’s filing for the Litecoin ETF is yet another milestone in the cryptocurrency sector, with increased possibilities of approval in the US market, this indicates that regulators are being more open minded regarding services and investment opportunity in the world of cryptocurrencies.
