Nashville-based asset supervisor Canary Capital filed an S-1 kind for a Litecoin (LTC) exchange-traded fund (ETF) with the US Securities and Trade 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 of to have been a “honest launch,” which means there was no pre-mine or token sale.
Moreover, as a result of Litecoin is predicated on a proof-of-work consensus mannequin, there was no providing of LTC by any entity to public or non-public buyers. Thorn added:
“The SEC hasn’t said its place on the matter, but it surely’s unlikely that Litecoin could possibly be thought of to have been provided 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 USA as they did for Bitcoin.”
In accordance with Thorn, the identical can’t be mentioned about spot Solana ETFs for the reason that blockchain is predicated on a proof-of-stake consensus algorithm and performed a token sale.
Thorn said that this makes the preliminary launch truth sample of Solana totally different from Bitcoin and Litecoin. Moreover, the SEC presently alleges in its lawsuit towards Coinbase that SOL is a “crypto asset safety.”
Thorn mentioned:
“[This] is why some analysts have instructed that SOL ETF filings are bets on a Trump victory in November, as a change within the SEC’s strategy to classifying crypto property as securities would possible be required earlier than the company would approve the itemizing of SOL ETFs.”
Market dominated by Grayscale
In accordance 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 presently solely tapped by the Grayscale Litecoin Belief (LTCN).
In accordance with a CoinShares report, the LTC funds provided in Europe maintain $11.5 million in mixed property below administration (AUM), which represents lower than 10% of the overall 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.
