SEC Acknowledges Canary’s Litecoin ETF, Seeks Public Input

The U.S. Securities and Exchange Commission (SEC) is seeking public comments on a proposed spot Litecoin exchange-traded fund (ETF) from Canary Capital. This marks a major progress in the agency’s review process as crypto ETF trend gains traction.

SEC’s Take On Canary Litecoin ETF

According to a filing released on Wednesday, the SEC has opened a 21-day window for public feedback following the Litecoin ETF proposal’s publication in the Federal Register. The application was initially submitted by Nasdaq on January 16 in the form of a 19b-4 filing, a required step for exchanges presenting ETF proposals on behalf of issuers.

Bloomberg ETF analyst Eric Balchunas highlighted the significance of this development, stating in an X post that Nasdaq’s submission was the “first altcoin ETF to be ‘acknowledged.’” He also noted, “Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes.” However, he questioned whether the SEC would take the full 240 days to decide or opt for a quicker approval process. “Unknown,” he remarked.

The competition for crypto-based ETFs has been growing, with multiple firms submitting applications for products tied to cryptocurrencies like Solana and XRP. Additionally, some companies have proposed leveraged ETFs featuring memecoins linked to U.S. President Donald Trump and First Lady Melania Trump, coinciding with expectations of a more crypto-friendly stance from a potential Trump administration.

The regulatory landscape has also shifted under new SEC leadership. Acting Chair Mark Uyeda, who recently appointed Commissioner Hester Peirce to oversee a dedicated crypto task force, represents a departure from former Chair Gary Gensler’s stricter approach to the digital asset sector.

Earlier, the SEC approved Bitcoin ETFs in January 2024, followed by Ethereum ETFs later that year. Now, the agency’s focus has turned to evaluating whether additional cryptocurrencies, such as Litecoin, will gain approval for spot ETF trading.

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