Nasdaq has officially filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) for the proposed Canary Litecoin ETF, marking a key milestone in the regulatory process for the approval of a spot Litecoin exchange-traded fund (ETF). This filing could potentially allow Litecoin to join Bitcoin and Ethereum as the next cryptocurrency to be granted an ETF in the United States.
Nasdaq Submits 19b-4 for Canary Litecoin ETF
On January 16, Nasdaq submitted the 19b-4 form, initiating the SEC’s 240-day review period. This submission follows Canary Capital’s amended S-1 filing earlier in the week, addressing all the necessary elements that the SEC considers when evaluating ETF proposals. The filing outlines U.S. Bancorp Fund Services, LLC as the fund administrator, U.S. Bank N.A. to oversee the ETF’s cash, and Coinbase Custody Trust Company LLC as the custodian of the Litecoin held within the fund.
The SEC now has 240 days to approve, reject, or request further information regarding the ETF application. Bloomberg Senior ETF Analyst Eric Balchunas described the filing as a “positive signal,” suggesting that Litecoin could soon join the ranks of cryptocurrencies with approved spot ETFs.
Litecoin Price Soars Amid SEC Leadership Change
The filing arrives at a time of transition for the SEC, with a change in leadership under the new administration of President-elect Donald Trump. Former SEC Commissioner Paul Atkins, an advocate for cryptocurrency, has been recommended for the role, sparking optimism within the industry that the SEC might take a more favorable approach toward cryptocurrency ETFs under his leadership.
The news triggered a 15% surge in Litecoin’s price, reflecting a strong positive reaction from the market. On-chain analytics firm Santiment revealed that large investors, holding over 10,000 LTC, had acquired an additional 250,000 LTC over the past week, further boosting market sentiment in favor of Litecoin.
Intense Competition for Spot Crypto ETFs
As Litecoin advances in the ETF race, it faces competition from other major cryptocurrencies. Solana, in particular, is leading the charge with several companies, including VanEck, Grayscale, and Bitwise, having already filed 19b-4 forms for spot Solana ETFs. Grayscale’s Solana ETF is expected to receive preliminary approval from the SEC by January 23, while other filings for Solana ETFs are due later this month.
Meanwhile, applications for Ripple’s XRP ETFs are also pending, with firms such as WisdomTree, Bitwise, 21Shares, and Canary Capital in the mix. Experts predict that, if approved, Solana and XRP ETFs could attract up to $14 billion in investments within their first year of operation.
With the filing of the Canary Litecoin ETF, the competition for approval among spot crypto ETFs is intensifying, and Litecoin’s potential inclusion in the market could further accelerate institutional adoption of cryptocurrency investments.
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