Canary Capital has filed the world's first Litecoin with the U.S. Securities and Exchange Commission (SEC).
Canary Capital has filed the world's first Litecoin with the U.S. Securities and Exchange Commission (SEC). On Oct. 15, the S-1 filing marked a critical step toward expanded institutional access to digital asset investing. The firm must still file a 19b-4 filing, which is essential for getting its exchange listing approval.
The proposed fund would hold Litecoin directly and determine its daily net asset value based on the CoinDesk Litecoin Price Index, or LTX. Following the news, Litecoin (LTC) traded to as high as $73, up over 9%. Currently, it’s trading at $70.09, according to CoinMarketCap data.
However, industry observers are more cautious, citing the underwhelming performance of Ethereum ETFs just a few days ago as a fair warning. Indeed, the latest market data shows that Ethereum ETFs have struggled to find their footing, set against strong inflows seen by Bitcoin ETFs, adding credence to institutional appetite for other crypto alternative investment choices.
Canary Capital’s relative newcomer status in the ETF space may also constitute another set of challenges. Only recently filing on Oct. 8 for a Ripple (XRP) ETF, the firm does not have an extensive track record in managing large-scale investment products, as many institutional investors would hope.
Despite these red flags, Litecoin’s regulatory status might end up being a plus in its favor. For example, the earlier classification of Litecoin as a commodity by the Commodity Futures Trading Commission in a complaint filed against KuCoin would have smoothed the path going forward. This stands in marked contrast to what Canary's proposed XRP ETF faces in ongoing legal complications between Ripple and the SEC.
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