Key dealers
- Canary Capital’s Litecoin ETF may be the first place Crypto ETF approved by SEC 2025.
- CFTC classifies Litecoin as a commodity and separates it from other digital assets that are facing regulatory challenges.
Canary Capital’s Litecoin ETF is well positioned to become the first place Crypto ETF approved by Sec during the incoming Trump administration, given Litecoin’s raw material status, according to Bloomberg ETF analyst Eric Balchunas.
After Canary Capital’s changed S-1 archiving yesterday sent Nasdaq 19B-4 forms To SEC on Thursday, formally the review process for Canary Litecoin ETF begins. SEC now has 45 days from Federal Register Publication to approve or deny the list, with a possible 45-day extension.
According to Balchunas, the Litecoin ETF application has met all the necessary requirements and conditions for approval.
“Litecoin ETF now has all controlled boxes. The first alt -coin ETF 2025 is on the clock. I see no reason why this would be withdrawn either considering Sec gave comments about S-1, Litecoin is seen as goods and there is a new Sec-Sheriff in town, “Balchunas wrote on X on Thursday.
Balchunas stated Wednesday that SEC had provided feedback on the Canary Capitals S-1 application for their proposed Litecoin ETF. This caused the company to submit the amendment.
James Seyffart, Balchuna’s colleague Bloomberg ETF analyst, noted that “a 19B-4 would actually start the potential approval/denial clock.”
Canary capital Archived his Litecoin ETF S-1 statement with Sec in October 2023. The changed archiving names us Bancorp Fund Services as ETF administrator, with Coinbase Custody Trust and Bitgo that serves as custodian for ETF’s Litcoin Holdings.
CFTC classifies Litecoin as an item
CFTC noticed Litecoin as a commodity in its trial against Crypto Exchange Kucoin and thus exempted it from Sec’s securities rules.
SEC has not taken any official action or made any public statements that definitely categorize Litecoin as either a security or not a security.
Unlike Litecoin, Ripple and Solana have met explicitly Sec review. Ripple continues to be engaged in ongoing disputes with Sec, which entertaining That its native token, XRP, is a security.
SEC has also classified Solana’s solar token as a security in separate cases against Binance and Coinbase. These legal disputes remain unresolved.
