Canary Capital Submits S-1 Registration Statement to the U.S. SEC to Introduce the First Spot Litecoin ETF in the United States

Asset management firm Canary Capital has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to introduce the first

Asset management firm Canary Capital has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch the first spot Litecoin ETF in the United States.

The firm announced the development on Tuesday in the filing, presenting Litecoin as a “unique and compelling investment opportunity.” Highlighting the coin’s status as one of the longest-running blockchains with 100% uptime since its inception, Canary Capital touted Litecoin's proven track record of security and reliability, particularly in enterprise-grade use cases.

Following the announcement of the ETF filing, Litecoin (LTC) saw a favorable price reaction, rising over 3% to reach $69.16, briefly spiking above the $70 mark.

Canary Capital noted Litecoin's 100% uptime since its inception, a remarkable achievement that the firm believes positions the coin well for institutional investors seeking cryptocurrency exposure.

According to Canary Capital, Litecoin has also emerged as a leader in real-world payments through its integration with BitPay, one of the largest cryptocurrency payment processors. This collaboration showcases Litecoin's utility and increasing appeal in commercial transactions, further bolstering the firm's confidence in launching a Litecoin ETF.

In addition to the Litecoin ETF, Canary Capital has also submitted a proposal for an XRP ETF, hinting at a broader trend of growing institutional interest in cryptocurrency investments. This submission aligns with a recent application from investment firm Bitwise, highlighting the increasing attention from financial institutions in exploring cryptocurrency-linked financial products.

However, the ongoing legal dispute between the SEC and blockchain payment provider Ripple complicates the approval process for an XRP ETF. There is still contention over whether XRP should be classified as a security or a commodity, with the former presenting major regulatory hurdles.

On the other hand, a positive indication for the Litecoin ETF emerged from the U.S. Commodity Futures Trading Commission (CFTC) earlier this year, which notably described Litecoin as a commodity in a complaint against KuCoin.

This categorization could aid in the approval of the proposed spot Litecoin ETF, as commodities typically face fewer regulatory barriers compared to what the SEC defines as “securities.”

As institutional interest in cryptocurrency investment products continues to grow, the launch of the first spot Litecoin ETF could mark a pivotal moment for institutional participation in the digital asset space.

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