Canary Litecoin ETF Advances as US SEC Calls for Public Comments

The U.S. Securities and Exchange Commission (SEC) has acknowledged Nasdaq’s 19b-4 filing for the Canary Litecoin ETF, marking a key step in the review process. The agency is now soliciting public comments before making a decision on whether to approve or deny the proposal.

US SEC Acknowledges Canary Litecoin ETF Filing

The US SEC has acknowledged that it has received the 19b-4 application from Nasdaq to list and trade the Canary Litecoin ETF. This acknowledgement triggers a procedure under which the agency will assess the application and come up with a decision of whether to accept or reject the ETF.

In a public filing, the SEC has requested comments from investors and other market players. The agency will consider submissions for the 21 days following the proposal’s publication in the Federal Register. This period enables the stakeholders to make their opinions concerning the possibility of approving a spot Litecoin ETF.

According to Bloomberg senior ETF analyst Eric Balchunas, this filing is the first for an altcoin ETF to advance to this step. “Throw in the comments from the SEC on the S-1 and this filing is probably the most developed in terms of ticking all the boxes,” Balchunas added.

Regulatory Process and Market Expectations

The 19b-4 filing is the first of two steps that need to be taken to bring a spot cryptocurrency ETF to market. Upon acceptance of the initial application, the application moves into a review period during which the SEC analyzes market structure, investor protection, and legal compliance.

Market analysts are rather interested in the potential decision of the SEC to either take 240 days to consider this case or act faster.

Moreover, changes in the leadership of the SEC such as the current Acting Chair Mark Uyeda and Commissioner Hester Peirce’s participation in a crypto task force point towards a new direction in the regulation of the crypto market as compared to the Biden administration.

Growing Interest in Crypto ETFs

Canary is not the only company that is interested in a Litecoin ETF. Grayscale and CoinShares have also submitted their applications with the SEC. Grayscale filed a 19b-4 form to convert its existing Litecoin Trust into an ETF and CoinShares filed an S-1 form for a separate offering.

The recent rise in filings is a sign that more asset managers believe that the SEC will approve more crypto ETFs. ETF Store President Nate Geraci remarked on the changing regulatory environment, saying,

“Politics aside, it’s wild how much the party in control determines investment products everyday investors can access.”

Aligning with Nate Geraci’s comments, the Cboe has recently filed 19b-4 forms to list Solana ETFs from VanEck, Canary, Bitwise, and 21Shares. Additionally, Bitwise has submitted an application for a Dogecoin ETF.

Litecoin Price Jumps Over 5%

With this positive development, Litecoin price continues to trade at $116.60 at the time of writing, with a 4.58% rise in the last 24 hours. The cryptocurrency has also witnessed a rise in trading volume and open interest, which is an indication of growing market participation.

According to technical analysis, Litecoin price is in the process of breaking out of the falling wedge pattern, which could be followed by a bullish breakout. Moreover, the Relative Strength Index (RSI) is at 53.52 and moving upwards showing strengthening of bullish pressure.

Backing the optimistic trend, the MACD indicator is showing a bullish crossover and histogram moving above the zero line which arealso signs of soaring buying pressure.

Should bulls continue to exert control and price breaks out, resistance levels to watch include $120, with a potential breakout target between $140 and $160 if upward momentum continues. Analysts suggest that a strong move above these levels could indicate further price gains in response to ETF developments.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.