SEC Has 240 Days to Review Canary Capital’s Litecoin ETF
Founded in October 2024, Canary Capital has quickly made a name for itself in the crypto ETF space, filing applications for Solana (SOL), XRP (XRP), Litecoin (LTC), and Hedera (HBAR) ETFs. Notably, the Litecoin and Hedera filings are the first-ever ETF applications for these cryptocurrencies.
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On January 29, 2025, the U.S. Securities and Exchange Commission (SEC) officially accepted Canary Capital’s application for a Litecoin ETF. While this does not mean the ETF has been approved, it confirms that the SEC is willing to evaluate the proposal. The commission now has up to 240 days to reach a final decision.
This is the first altcoin ETF application to advance to this stage. According to Eric Balchunas, a senior ETF analyst at Bloomberg, the proposal has made notable progress in aligning with regulatory standards.
Litecoin, referred to as the “silver of cryptocurrencies,” could be the next logical step in the evolution of crypto ETFs. With a strong historical foundation and a technical structure similar to Bitcoin, Litecoin has long been positioned as a natural complement to BTC. It was created in 2013 as a Bitcoin fork by a group of users who disagreed with the direction of Bitcoin’s development.
In October 2024, an investment advisory firm filed an S-1 registration statement, outlining its plan to offer a new investment vehicle. This filing came less than a week after Canary Capital filed for an XRP-based ETF.
Eric Balchunas noted that the timeline now hinges on whether the SEC takes the full 240-day review period or grants approval sooner.
The application comes amid ongoing regulatory shifts in the crypto investment space, particularly following the historic approval of spot Bitcoin ETFs in January 2024 and the subsequent approval of Ethereum ETFs in May 2024.
What Is the Litecoin ETF from Canary Capital?
Canary Capital’s proposed Litecoin ETF aims to remove the technological hurdles that have previously made it difficult for institutional investors to gain exposure to cryptocurrencies. Instead of dealing with digital wallets and private keys, investors will be able to access Litecoin (LTC) through traditional brokerage accounts.
The ETF will track the CoinDesk Litecoin Price Index (LTX) and store Litecoin using a secure custody solution.
Its hybrid structure enables specialized financial firms, known as authorized participants, to create and redeem large blocks of ETF shares through an innovative cash-only settlement system.
Rather than handling Litecoin directly, broker-dealers will deposit cash into the trust in exchange for newly issued ETF shares.
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