The U.S. Securities and Exchange Commission (SEC) has recognized Canary Capital’s request for a Litecoin ETF, indicating a hopeful view for the go-ahead.
Under Gary Gensler’s administration, the SEC had earlier requested firms trying to enlist altcoin ETFs to pull back their applications, successfully finishing their odds before an official assessment. However, with Gensler not at the guiding position, the SEC’s acknowledgment of Canary Capital’s request, instead of dismissal or weight to pull back, signifies a noteworthy change, directing it toward an official endorsement procedure for the first time.
Bloomberg ETF expert James Seyffart affirmed on X that the SEC is presently assessing the 19b-4 request submitted by Nasdaq. A 19b-4 request is a formal solicitation from self-administrative associations like Nasdaq to the SEC, looking for rule changes to list new monetary items like crypto ETFs.
Already, the request had been anticipating formal acknowledgment by the SEC. While this isn’t an official endorsement, it brings the LTC ETF one stage nearer to potential endorsement. The SEC will now formally start the audit procedure, considering market dangers, financial backer assurance, and consistence with monetary guidelines prior to settling on a choice.
Canary Capital presented the LTC ETF request on January 16, meaning to send off the primary altcoin ETF past Bitcoin (BTC) and Ethereum (ETH). The SEC, under Acting Chairman Mark Uyeda, affirmed receipt of Canary Capital’s Litecoin (LTC) ETF request on January 29.
Bloomberg Senior ETF Expert Eric Balchunas noticed that the SEC will start a public remark period, complete different audit stages, and may support, dismiss, or postpone the choice, with an all out span of as long as 240 days. This could prompt the endorsement of the primary altcoin ETF past Bitcoin and Ethereum in 2025.
He highlighted that from all the applications presented, only the Litecoin ETF got the first green light. Ripple Withdraws Reciprocal Action Against SEC, Pays $50 Million Fine
An ETF, also known as an Exchange Traded Fund, represents a collection of holdings that are traded on stock exchanges, in a similar fashion to a standard stock. Instead of acquiring specific holdings such as gold, Bitcoin, or Litecoin directly, investors have the option to acquire shares in a fund that possesses these holdings. Industry experts anticipate that this could be the initial ETF to gain approval in 2025, hinting at a notable transformation in the US crypto investment environment during the current year. Fundamentally, it seems that Litecoin may emerge as the pioneer in the crypto space to receive comprehensive ETF status in the US!
