Canary’s Litecoin ETF Moves Closer to Approval as SEC Opens Public Consultation

Highlights:

• Canary’s Capital Litecoin ETF approval has taken a major boost with the SEC’s new filing.
• In the new publication, the US regulatory watchdog called for public opinion.
• The latest development is a significant step that would ultimately hasten the Litecoin ETF endorsement procedures.

Canary’s Litecoin (LTC) Exchange Traded Fund (ETF) is making headlines again following the United States Securities and Exchange Commission’s (SEC) new filing acknowledging that it has received the 19b-4 application from Nasdaq. As part of its response, the US regulatory watchdog has called for public comments on the ETF filing.

What the SEC meant as public input or opinion is that the general public relays what they think about a potential Canary’s Litecoin ETF approval. The general public includes mostly crypto market participants and other individuals trading digital assets. This step marks a significant advancement that would eventually result in the endorsement of a Litecoin ETF.

It is worth noting that Nasdaq’s earlier application with the SEC, which kick-started a potential Litecoin ETF endorsement procedure, was aimed at convincing the SEC to list and trade the Canary Litecoin fund. In its filing, the SEC gave a 21-day window for public inputs before proceeding with the approval processes.

SEC has *acknowledged* Nasdaq's 19b-4 filing to list & trade Canary Litecoin ETF…

Game on. pic.twitter.com/UI2pvjZENU

— Nate Geraci (@NateGeraci) January 29, 2025

Possible Events that Would Likely Follow SEC’s Call for Public Input

The next step after the specified period elapses would involve the SEC making decisions on whether to approve or reject the ETF filing. Based on the SEC’s old standard, the final decision on the proposed Litecoin ETF will likely be made public after about 240 days. However, market participants have speculated that LTC’s case might take a different approach.

The new speculation stems from the SEC leadership’s recent overhaul. Mark Uyeda now serves as the commission’s acting chairman. His track record proves that he is committed to ensuring that the United States crypto regulatory landscape is welcoming, enabling crypto-related entities to survive in the US.

Recall that a few days after Donald Trump appointed Uyeda, he kick-started the crypto regulatory reform adventure with the introduction of the Crypto Task Force. Led by another top crypto proponent, Hester Peirce, the new setup was saddled with the responsibility of clarifying crypto regulatory guidelines and addressing peculiar challenges that have hindered active participation in crypto-related activities.

Bloomberg Analyst Shares Insight

A renowned ETF analyst, Eric Balchunas, also waded into the debate on whether the Litecoin ETF approval will happen sooner. He shared his thoughts on X, where he mentioned that LTC’s application was the first to be approved for altcoins. He added that the SEC ordered other applicants to withdraw their 19b-4 filings.

Still, in the same tweet, he encouraged market participants to actively participate in the SEC’s call for public input. The Bloomberg analyst said, “Throw in the comments from SEC on the S-1, and this filing is by far the furthest along checking all the boxes. Q now is whether this SEC wait the full 240 days or approve more rapidly. Unknown.” From his comment, it is obvious that Eric is also unsure about the propensity of a rapid ETF approval. The final decision rests with the regulatory watchdog, as enthusiasts will only continue to hope for the best possible outcome.

First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown. https://t.co/iXwq9PkLGr

— Eric Balchunas (@EricBalchunas) January 29, 2025

Litecoin Jumps by 10%

Following the positive news, Litecoin’s price experienced a significant 10% increment, which raised its selling price to about $125. As expected, the token’s market capitalization appreciated significantly to reach $9.43 billion. Similarly, LTC’s 24-hour trading volume has jumped by about 60.27% and has a $990.72 million valuation.