2024-10-16
On October 15, 2024, U.S.-based investment firm Canary Capital Group
LLC filed registration documents with the United
States Securities and Exchange Commission (SEC) for a spot Litecoin (LTC)
exchange-traded fund (ETF).
Bitcoin (BTC) and Litecoin (LTC) are two of the most well-known
cryptocurrencies, they shared the concept of decentralized, peer-to-peer
cryptocurrencies.
The ETF, if approved, would hold Litecoin directly and closely
follow the CoinDesk Litecoin Price Index (LTX), providing investors with
exposure to the digital asset's real-time price movements.
Litecoin, often referred to as a faster, more affordable alternative
to Bitcoin, it has a block time of 2.5 minutes—making transactions four times
faster than Bitcoin. Litecoin is positioned as an efficient solution for
smaller payments.
Canary Capital, led by digital asset investment expert Steven
McClurg, has gained prominence in the cryptocurrency space through its flagship
product, the Canary HBAR Trust, which provides accredited investors with
exposure to HBAR, the native cryptocurrency of the Hedera blockchain network.
This latest filing comes shortly after Canary Capital’s S-1
submission on October 9 for a spot XRP ETF, following a similar filing by
crypto fund issuer Bitwise.
The XRP token launched by Ripple in 2012, became embroiled in a
legal battle with the SEC in 2020 over its classification as a security.
Filing the S-1 registration form is the initial step in launching
the LTC ETF, but Canary Capital needs to await the SEC's review before moving
forward with the product.
If approved, the ETF could further legitimize Litecoin as a
mainstream cryptocurrency investment, much like the anticipated XRP and Bitcoin
ETFs.
