Nashville-based asset supervisor Canary Capital filed an S-1 kind for a Litecoin (LTC) exchange-traded fund (ETF) with the US Securities and Change Fee (SEC) on Oct. 15.
Canary’s submitting is the primary utility for a Litecoin-linked spot ETF within the US and comes lower than per week after the asset supervisor’s XRP ETF submitting on Oct. 8.
Canary Capital CEO and founder Steven McClurg was beforehand Valkyrie Investments chief funding officer, having co-founded the asset supervisor together with Leah Wald.
Completely different from Solana ETF filings
Alex Thorn, head of analysis at Galaxy Digital, informed CryptoSlate that Litecoin is mostly thought-about to have been a “truthful launch,” that means there was no pre-mine or token sale.
Moreover, as a result of Litecoin relies on a proof-of-work consensus mannequin, there was no providing of LTC by any entity to public or non-public traders. Thorn added:
“The SEC hasn’t acknowledged its place on the matter, but it surely’s unlikely that Litecoin may very well be thought-about to have been supplied as a safety since there was no providing in any respect. Thus, issuers ought to theoretically have the identical pathway to launch spot-based Litecoin ETFs in the US as they did for Bitcoin.”
In line with Thorn, the identical can’t be stated about spot Solana ETFs because the blockchain relies on a proof-of-stake consensus algorithm and performed a token sale.
Thorn acknowledged that this makes the preliminary launch reality sample of Solana totally different from Bitcoin and Litecoin. Moreover, the SEC at present alleges in its lawsuit towards Coinbase that SOL is a “crypto asset safety.”
Thorn stated:
“[This] is why some analysts have recommended that SOL ETF filings are bets on a Trump victory in November, as a change within the SEC’s strategy to classifying crypto belongings as securities would seemingly be required earlier than the company would approve the itemizing of SOL ETFs.”
Market dominated by Grayscale
In line with Bloomberg ETF analyst James Seyffart, ETPs like CoinShares’ LITE in Switzerland and ETC Group’s ELTC in Germany already maintain Litecoin. In the meantime, the US market is at present solely tapped by the Grayscale Litecoin Belief (LTCN).
In line with a CoinShares report, the LTC funds supplied in Europe maintain $11.5 million in mixed belongings below administration (AUM), which represents lower than 10% of the whole AUM of Litecoin-related ETPs globally.
In the meantime, LTCN has $127.4 million in AUM, which makes up the remaining 93% of the cash invested in Litecoin-related ETPs worldwide.
