Canary Capital’s Litecoin ETF: The SEC’s New Favorite Child?

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In a development that could only be described as a delightful twist in the ongoing soap opera of cryptocurrency regulation, the U.S. Securities and Exchange Commission has finally deigned to acknowledge the Litecoin ETF filing from the ever-optimistic Canary Capital. Yes, you heard it right! This could very well lead to the first altcoin ETF outside of the illustrious Bitcoin and Ether being approved in the not-so-distant future of 2025. 🎉

Under the watchful eye of Acting Chairman Mark Uyeda, the SEC has taken a moment from its busy schedule of existential pondering to acknowledge, on January 29, the Litecoin (LTC) ETF filed by Canary Capital. One can only imagine the confetti raining down in the Canary offices at this momentous news.

Bloomberg’s ETF oracle, James Seyffart, confirmed on X (formerly known as Twitter, because why not?) that the SEC is currently reviewing the 19b-4 application submitted by Nasdaq. A 19b-4 filing, for those not in the know, is a formal request from a self-regulatory organization—like Nasdaq, which is apparently still a thing—to the SEC to request rule changes. You know, the usual bureaucratic tango. 💃

Can confirm. @CanaryFunds’ Litecoin ETF 19b-4 filing has been acknowledged by the SEC (As expected)

— James Seyffart (@JSeyff) January 29, 2025

Canary Capital, in a move that can only be described as audacious, filed for an LTC ETF on January 16, with dreams of being the first altcoin ETF outside of Bitcoin (BTC) and Ether (ETH). According to The Block, under the previous regime of Gary Gensler, the SEC had allegedly told other companies attempting to register for altcoin ETFs to withdraw their applications. Talk about a party pooper! 🎈

Now that Gensler has exited stage left, the SEC has accepted the filing rather than issuing a polite rejection or pressuring a withdrawal. This marks a significant shift in the regulatory landscape, guiding the official approval process for the first time. Until today, the filing was languishing in the SEC’s inbox, awaiting formal acknowledgment like a forgotten email.

While this is not a formal approval from the SEC (let’s not get ahead of ourselves), the LTC ETF is now one step closer to possible approval. The SEC will officially begin the review process, taking into account market risks, investor protections, and other compliance with financial rules. Because who doesn’t love a good compliance check? 📋

Eric Balchunas, Senior ETF Analyst at Bloomberg, has chimed in with the delightful news that the SEC will open a public comment period, have several review phases, and can approve, reject, or postpone the decision for up to a combined 240 days. Just think of it as a bureaucratic waiting game, where the stakes are high and the coffee is strong. ☕

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.

— Eric Balchunas (@EricBalchunas) January 29, 2025

ETFs, for those who might be wondering, are essentially a collection of assets for sale on the stock market, much like a buffet where you can sample a little bit of everything—gold, Bitcoin, Litecoin, and more. Instead of buying individual assets, an ETF offers investors a fair share of a fund that owns these assets. Industry observers are holding their breath in anticipation of this being the first ETF approval in 2025, signaling a major change in the landscape of U.S. crypto investment products throughout the year. Let the games begin! 🎲

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2025-01-30 09:23