- Nasdaq files 19b-4 for the Canary Litecoin ETF.
- Analysts predict Litecoin as the next cryptocurrency to secure ETF approval.
- Litecoin’s clean regulatory history and widespread adoption as a payment method make it an attractive candidate.
The Litecoin ETF race has gained momentum with Nasdaq filing a 19b-4 form to list and trade the Canary LTC ETF. This move has sparked optimism among investors and analysts, with many predicting LTC as the next cryptocurrency to secure ETF approval.
Eric Balchunas of Bloomberg, a prominent ETF analyst, believes LTC is the most likely cryptocurrency to receive ETF approval in 2025, pending the appointment of the new SEC chair. This sentiment is echoed by the crypto community, who anticipate it as the first altcoin ETF to be approved.
LTC ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given SEC gave comments on the S-1, LTC is seen as commodity and there’s new SEC sheriff in town.
What makes Litecoin a potential ETF candidate is its relatively clean regulatory history compared to cryptocurrencies like Solana and XRP, which are facing regulatory challenges. It needs to be noted that many well-known issuers such as VanEck and Bitwise have already filed applications for SOL and XRP spot ETFs.
Nate Geraci, president of The ETF Store, recently wrote that from an ETF competition perspective, it would be an “important breakthrough” if Canary’s Litecoin ETF could be approved before others. Although Canary has not yet launched any ETF products, its early deployment of Litecoin and Hedera (HBAR) ETFs may bring significant advantages.
Litecoin Deemed A Safe Bet for ETF Approval Amidst Regulatory Challenges
The SEC’s recent appeal in the XRP/Ripple case further strengthens LTC’s position. The rejection of the Bitwise Index 10 Crypto ETF highlights the SEC’s cautious approach to many cryptocurrencies, which are still viewed as securities.
Litecoin’s widespread adoption as a payment method also bolsters its case. It is the most used cryptocurrency for payments on platforms like BitPay, demonstrating its utility beyond speculation. Additionally, the MimbleWimble upgrade in 2022 enhanced the coin’s privacy features, further positioning it apart from other cryptocurrencies.
While the outlook for a Litecoin ETF appears promising, investors should exercise caution. The cryptocurrency market is highly volatile, and ETF approvals are subject to regulatory scrutiny and potential delays. Conducting thorough research and understanding the risks involved is crucial before investing in any cryptocurrency or ETF.