Litecoin ETF Likely to Be Approved Next in US, Bloomberg Analysts Say

Highlights:

• Analysts say that the Litecoin exchange-traded fund could gain U.S. approval soon.
• Canary Capital filed a revised S-1 form for its Litecoin ETF, signaling SEC review.
• SEC leadership change could impact Litecoin ETF approval timeline, experts suggest.

Bloomberg Senior ETF Analyst Eric Balchunas stated on X Wednesday that a Litecoin (LTC) spot Litecoin exchange-traded fund (ETF) will likely gain U.S. approval next. The analyst’s remark comes after Canary Capital submitted a revised S-1 form for its Litecoin ETF to the Securities and Exchange Commission (SEC). 

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NEW: @CanaryFunds just filed an amended S-1 for their Litecoin ETF filing. No guarantees — but this might be indicative of SEC engagement on the filing. Still no 19b-4 filing yet though

(A 19b-4 would actually start the potential approval/denial clock) h/t @isabelletanlee pic.twitter.com/wFtNOmbmYx

— James Seyffart (@JSeyff) January 15, 2025

Canary Capital Submits Revised S-1 for Litecoin ETF, Signaling SEC Review

Canary Capital initially submitted the S-1 registration form for its Litecoin ETF to the SEC in October last year. The S-1 form is an initial registration document for new securities filed with the agency. The company filed a revised version of the form on Wednesday.

In the amended filing, Canary revealed that U.S. Bancorp Fund Services would act as the ETF administrator. Coinbase Custody Trust and BitGo were named as custodians responsible for holding the ETF’s Litecoin on its behalf. The changes also address various accounting, marketing, legal, and tax matters.

Analysts noted that Canary Capital’s recent filing seems to validate industry “chatter” about Litecoin applications. This indicates that the SEC is currently reviewing these filings. Amended S-1 registration statements, such as the one filed by Canary, are typically submitted after the ETF issuer has received feedback from the SEC.

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

However, Bloomberg ETF analyst James Seyffart pointed out that Canary’s S-1 must initiate the approval or denial process, and a 19b-4 filing must accompany it.

We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that's a huge variable. https://t.co/cKFswPwcr0

— Eric Balchunas (@EricBalchunas) January 15, 2025

SEC Leadership Shift Could Impact Litecoin ETF Approval Timeline

Balchunas highlighted a “huge variable” — the appointment of a new SEC chair after Gary Gensler’s departure next Monday. Last month, President-elect Donald Trump nominated crypto-friendly former SEC commissioner Paul Atkins for the role, but the timing of the Senate’s confirmation remains uncertain, according to Reuters. The approval timeline for the Litecoin ETF may hinge on upcoming shifts in SEC leadership.

If approved, Litecoin (LTC) would become the third-spot crypto ETF in the U.S., following Bitcoin (BTC) and Ether (ETH). This comes as Litecoin experienced a rally of over 17% from January 15-16. During that period, it outperformed all cryptocurrencies with a market cap of over $8 billion, according to CoinGecko data.

Blockchain analytics firm Santiment attributed the rise in Litecoin to large holders, or “whales” and “sharks.” Since January 9, these investors have accumulated a total of 250,000 Litecoin, valued at approximately $29 million.

Solana and XRP ETFs Also Seeking SEC Approval

Solana is ahead in the race, with ETF issuers like Bitwise, VanEck, 21Shares, and Canary filing 19b-4s for a spot Solana (SOL) ETF in November. XRP is also seeking SEC approval as a spot ETF. JPMorgan analysts forecast that SEC-approved spot ETFs for Solana and XRP could attract between $3 billion to $6 billion and $4 billion to $8 billion in net assets, respectively, within their first year.

SOL & XRP ETPs Could Attract $3-8bn Each: JPM

ETP assets ($108bn) make up 6% of the total Bitcoin market cap ($1,874bn) after the ETPs’ first year of trading; likewise, ether ETP assets ($12bn) have a 3% penetration rate of the total Ethereum market cap ($395bn) within its first… pic.twitter.com/7rApA2z71h

— matthew sigel, recovering CFA (@matthew_sigel) January 13, 2025

ETF Store President Nate Geraci said a spot LTC ETF would be unexpected, as XRP and SOL rank among the top six.

Don’t have much to add here other than ltc is like a top 25 digital asset by market cap…

Would be something to see spot ltc ETF approved before xrp or sol ETF, which are top 6 assets.

Like Eric says, all comes down to SEC chair. https://t.co/YuHg4l9bdh

— Nate Geraci (@NateGeraci) January 16, 2025

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