Canary Capital Files for Litecoin ETF Amid XRP ETF Frenzy

Canary Capital has officially submitted a filing for a spot Litecoin ETF in the United States, making it the first of its kind. The firm submitted the Form S-1 application to the U.S. Securities and Exchange Commission (SEC) on Tuesday, October 15. This marks a significant development for the crypto investment space, where most asset manager’s filings were focused on Bitcoin, Ethereum, Solana, and XRP.

Reaction on Canary’s Litecoin ETF Filing

James Seyffart, an ETF analyst at Bloomberg Intelligence, shared the news on X, stating, “New ETF issuer Canary (who recently filed for a Ripple XRP ETF) just filed for a Litecoin ETF.” He added further context about the firm’s leadership and its background. The analyst noted that “Canary Capital is founded and run by Steven McClurg who used to be one of the main people running things over at Valkyrie before they were acquired by CoinShares.”

Amid the recent SEC filing, Seyffart also pointed out that the move comes in a market where Litecoin already has a presence through exchange-traded products (ETPs) in Europe. “There are some ETPs that already hold Litecoin. $LITE in Switzerland from CoinSharesCo, $ELTC in Germany from ETC Group (now owned by Bitwise).” Additionally, he mentioned the existing Grayscale Litecoin Trust in the U.S., trading under the symbol LTCN.

Canary just filed for a Litecoin ETF pic.twitter.com/DJhBRQUrJe

— Eric Balchunas (@EricBalchunas) October 15, 2024

This development is significant as it marks the first ETF application in the U.S. focused solely on Litecoin, unlike previous applications that targeted more well-known cryptocurrencies. Eric Balchunas, a senior Bloomberg ETF analyst, also commented on the development, stating, “Def first ever in US but may also be first ever in world. 21Shares who has everything under sun doesn’t curr have one looks like.”

XRP ETF Hype

This move comes shortly after Canary Capital’s filing for an XRP ETF on October 8, which made waves across the crypto community. Also, it’s important to note that the firm’s XRP ETF filing followed in the footsteps of Bitwise, one of the largest crypto asset managers in the space.

The potential approval of both the Litecoin and XRP ETFs would bring a new level of accessibility to these assets, potentially expanding their reach to traditional investors.

While Canary Capital’s XRP ETF filing was expected, the Litecoin ETF application stands out, given that asset managers have generally prioritized more popular cryptocurrencies like Bitcoin, Ethereum, and Solana. Also, on the regulatory front, it could set a precedent for future crypto ETFs as the SEC continues to remain cautious on such products.

Also Read: Ripple’s XRP rally to $100 is tied to a SWIFT-like platform, not an ETF