SEC opens public comment on Canary Litecoin ETF, a move advancing Litecoin ETF approval

Jan 29, 2025 - the U.S. Securities and Exchange Commission (SEC) has taken a step toward evaluating the Canary Litecoin ETF, inviting public comments on the proposal as part of its review process.

The request for feedback follows a 19b-4 filing submitted by Nasdaq on January 16, marking a critical moment in the approval process for a spot Litecoin exchange-traded fund (ETF).

According to a filing released on Wednesday, the SEC has opened a 21-day comment period following the publication of the proposal in the Federal Register.

It signals progress in the agency’s deliberations over whether to approve or reject the ETF.

Eric Balchunas on X: "First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown." 

Eric Balchunas, a senior ETF analyst at Bloomberg, noted that Nasdaq’s 19b-4 filing for the Canary Litecoin ETF was the first altcoin ETF to receive an official acknowledgment from the SEC.

The 19b-4 filing represents the second phase of a two-step process in launching a spot crypto ETF, requiring SEC review and potential approval before an ETF can be listed for trading.

The move comes amid growing interest in cryptocurrency-based ETFs. Several firms are currently vying to launch crypto ETFs tied to alternative digital assets, including Solana and XRP.

There have even been proposals for leveraged ETFs linked to meme-based cryptocurrencies associated with former President Donald Trump and First Lady Melania Trump, reflecting speculation around a potentially crypto-friendly administration.

The SEC's stance on cryptocurrency ETFs has evolved in recent years.

In January 2024, the agency approved the first U.S. spot Bitcoin ETFs, followed by Ethereum ETFs later that year.

The regulatory body is currently led by Acting Chair Mark Uyeda, who recently appointed Commissioner Hester Peirce to lead a crypto-focused task force.

Their leadership marks a departure from former Chair Gary Gensler’s more cautious approach to crypto regulation. Former US SEC Chair Gary Gensler appointed professor at MIT Sloan after the left the SEC.

As the public comment period begins, all eyes remain on the SEC’s next move, whether it will expedite the approval process or take the full 240-day review period before reaching a decision.