Litecoin ETF: Nasdaq Files 19b-4 on Behalf of Canary Capital 

Investment management firm Canary Capital may get the US Securities and Exchange Commission (SEC) to approve its Litecoin ETF filing soon.

A recent move from Nasdaq backs this projection. Markedly, the stock exchange filed a 19b-4 form for the Canary Litecoin ETF on Thursday.

Essense of the 19b-4 Filing

Usually, a 19b-4 filing is a form submitted to the SEC by Self-regulatory Organizations (SROs) to propose rule changes.

It is usually used to check the consistency of the proposed rule with the Exchange Act. Exchanges usually file them on behalf of prospective ETF issuers.

After this filing, the next step toward an ETF approval is acknowledgment from the SEC. Once this acknowledgment is published in the Federal Register, the clock on the agency’s approval timeline starts ticking.

Meanwhile, the 19b-4 filing is the second step in submitting such applications to the SEC.

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Canary Capital took the first step in October when it submitted its Litecoin ETF S-1 filing with the regulator.

It is worth noting that this filing did not reveal the potential administrator and custodian of the fund at the time.

On December 15, the asset manager filed the amended version of the same filing. As market experts noted, this suggests that the SEC was engaging the application.

In the latest 19b-4 filing, the fund noted that US Bancorp Fund Services, LLC will be its administrator.

Similarly, US Bank N.A. will custody the ETF’s cash, while Coinbase Custody Trust Company LLC will custody the ETF’s Litecoin.

Canary Capital and Prospects of Litecoin ETF Push

Although the atmosphere surrounding Canary Capital’s Litecoin ETF filing seems optimistic, the crypto community is still concerned about its prospects.

Senior Bloomberg ETF analyst Eric Balchunas says there is a high chance that Litecoin ETF will be the next crypto ETP to hit the industry.

In his Wednesday post on X, he wrote, “We had heard chatter that the Litecoin S-1 had gotten comments back from [the] SEC,” and this “bodes well for our prediction that Litecoin is most likely to be the next coin approved.”

Donald Trump is officially coming into office on January 20, and this event is likely to alter the trajectory of the crypto regulatory landscape in the US.

With a pro-crypto administration, products like Litecoin ETFs may get approved quickly. This is even complemented by the fact that Paul Atkins is set to take over from Gary Gensler as SEC Chair.

While the agency’s current Chairman will step aside on January 20, Atkins’ nomination hearing may not come until the next few weeks. Per expert projection, this may also not take place until March.

Hype Around Crypto ETF Products

Generally, several asset managers are vying to list different crypto ETFs.

So far, a few of them have made a move by submitting their applications with the SEC. In October, Canary Capital also filed to list XRP ETF.

The firm followed in the footsteps of Bitwise and WisdomTree, both of whom are also seeking the Commission’s approval for its XRP ETF application.

Bitwise, VanEck, and 21Shares have equally filed to list Solana ETFs. Litecoin and Hedera ETF applications are also on the U.S SEC’s desk.

There is currently hype around these crypto ETFs, which may not go anywhere, considering that America is about to go crypto.