Canary’s revised S-1 analysts are confident that the Litecoin ETF will continue
Canary Capital's recently updated S-1 form for its Canary Litecoin Exchange Traded Fund (ETF) may indicate that the altcoin could be the next digital asset to get crypto ETF treatment in the United States, following Bitcoin and Ether in 2024.
According to Bloomberg analysts, a January 15 filing from Canary Capital appears to confirm industry “chatter” that Litecoin applications are being reviewed by the securities regulator.
“[This] According to Bloomberg ETF analyst Eric Balchunas on X, Litecoin is very good for our forecast.
S-1 filing statements, such as Canary's filing amendment, are often made after the prospective ETF issuer receives feedback from the SEC.
However, according to Bloomberg EFF analyst James Seifert, Canary's S-1 is associated with a 19b-4 filing for a potential “clock” or rejection.
Solana is at the forefront of this, as ETF issuers Bitwise, VanEck, 21Shares and Canary filed 19b-4s for Bota Solana ( SOL ) in November.
Source: Eric Balchunas
Canary filed S-1 forms related to its proposed deals with crypto custodians Coinbase and BitGo, in addition to various accounting, marketing, legal and tax matters.
If approved, Litecoin (LTC) will be the third to be approved in the United States, after Bitcoin (BTC) and Ether (ETH).
It comes as Litecoin rallied more than 15% between January 15 and 16 — outpacing all other cryptocurrencies with a market cap of more than $8 billion in that time frame, CoinGecko data shows.
Blockchain analytics firm Santiment claims that Litecoin whales and “sharks” have moved a combined 250,000 Litecoin worth an estimated $29 million since January 9.
Source: Santiment
The amendment comes just days before the inauguration of Donald Trump, the most conservative US president to date.
The current chairman of the SEC, Gary Gensler, will be replaced on the same day by Paul Atkins, who previously served as SEC commissioner between 2002 and 2008 – and many expect him to provide a friendlier crypto regulatory environment.
Related: BlackRock Cboe Launches New Bitcoin ETF in Canada
XRP (XRP) is preparing to be approved by the SEC in Spot ETF form.
JPMorgan analysts forecast that SEC-approved spot Solana and XRP ETFs would attract $3 billion to $6 billion and $4 billion to $8 billion in net assets in the first year, respectively.
Balchunas said Solana and the XRP ETF raised $14 billion at the time, which was a “reasonable estimate.”
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