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Nashville-based asset supervisor Canary Capital filed an S-1 type for a Litecoin (LTC) exchange-traded fund (ETF) with the US Securities and Alternate 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 every 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.
Totally different from Solana ETF filings
Alex Thorn, head of analysis at Galaxy Digital, instructed CryptoSlate that Litecoin is mostly thought-about 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 personal buyers. Thorn added:
“The SEC hasn’t said its place on the matter, nevertheless it’s unlikely that Litecoin might be thought-about 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 response to Thorn, the identical can’t be stated about spot Solana ETFs for the reason that blockchain is predicated on a proof-of-stake consensus algorithm and carried out a token sale.
Thorn said that this makes the preliminary launch reality sample of Solana totally different from Bitcoin and Litecoin. Moreover, the SEC at the moment alleges in its lawsuit towards Coinbase that SOL is a “crypto asset safety.”
Thorn stated:
“[This] is why some analysts have steered that 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 probably be required earlier than the company would approve the itemizing of SOL ETFs.”
Market dominated by Grayscale
In response to 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 at the moment solely tapped by the Grayscale Litecoin Belief (LTCN).
In response to a CoinShares report, the LTC funds provided in Europe maintain $11.5 million in mixed belongings beneath administration (AUM), which represents lower than 10% of the whole 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.