Nashville-based asset supervisor Canary Capital has filed a Kind S-1 for a Litecoin (LTC) exchange-traded fund (ETF) at US Securities and Trade Fee (SEC) on October 15.
Canary's submitting is the primary submitting for a spot ETF linked to Litecoin within the US and comes lower than every week after the asset supervisor's XRP ETF. submitting on October 8.
Canary Capital CEO and founder Steven McClurg was beforehand chief funding officer of Valkyrie Investments, which he co-founded with Leah Wald, the asset supervisor.
Completely different from Solana ETF purposes
Alex Thorn, head of analysis at Galaxy Digital, mentioned CryptoSlate that Litecoin is mostly thought-about to be a “truthful begin”, which means that there was no pre-mining or token sale.
Moreover, since Litecoin is predicated on a proof-of-work consensus mannequin, no entity has supplied LTC to public or non-public traders. Thorn added:
“The SEC has not said its place on the matter, however it’s unlikely that Litecoin will be thought-about to be supplied as a safety since no provide has taken place. So issuers ought to theoretically have the identical solution to launch a spot Litecoin ETF in the US as they did for Bitcoin.
In accordance with Thorne, the identical can’t be mentioned in regards to the spot Solana ETF as a result of the blockchain is predicated on a proof-of-stake consensus algorithm and has performed a token sale.
Thorn said that this differs from Solana's unique launch sample bitcoin and Litecoin. As well as, the SEC at present alleges in its lawsuit towards Coinbase that SOL is “Crypto Asset Safety”.
Thorne mentioned:
“(That) is why some analysts have steered that the SOL ETF filings are bets on a Trump victory in November, as a change within the SEC's method to classifying crypto belongings as securities would seemingly be mandatory earlier than the company would approve a SOL ETF itemizing. .”
Grayscale dominates the market
In accordance with Bloomberg ETF analyst James Seyffart, ETPs like CoinShares FEROCIOUSLY in Switzerland and ETC Group ELTC in Germany, Litecoin already holds. In the meantime, the US market at present solely makes use of Grayscale Litecoin Belief (LTCN).
In accordance with CoinShares messageLTC funds supplied in Europe maintain $11.5 million in mixed belongings below administration (AUM), which is lower than 10% of the entire AUM of Litecoin-related ETPs worldwide.
In the meantime, LTCN has $127.4 million in AUM, accounting for the remaining 93% of cash invested in Litecoin-related ETPs worldwide.
