SEC Acknowledges Canary Capital’s Litecoin ETF—What Happens Next?

YEREVAN (CoinChapter.com) —  The SEC has officially acknowledged Canary Capital’s Litecoin ETF filing under 19b-4, triggering a strict 240-day deadline for approval or rejection. This marks a major step for Litecoin, making it the first altcoin ETF after Ethereum to reach this stage.

SEC’s 19b-4 Filing Puts Litecoin ETF in Focus

The SEC must now decide on Canary Capital’s Litecoin ETF within 240 days. Analysts have debated whether any altcoin ETF could gain approval, with Litecoin emerging as a key candidate.

ETF analysts Eric Balchunas and James Seyffart previously noted that a Litecoin ETF had better chances than Solana or XRP. Their prediction aligns with the SEC’s latest acknowledgment.

“This is the altcoin 19b-4 to be acknowledged,”

said Balchunas.

“The rest were told to withdraw by Gensler’s SEC. Throw in the comments from the SEC on the S-1, and this filing is by far the furthest along, checking all the boxes. The question now is whether the SEC will wait the full 240 days or approve more rapidly.”

Balchunas Highlights Solana ETF Failures: Why 19b-4 Acknowledgment Matters

This milestone stands out as significant in the SEC’s ETF approval process, especially given the historical context of previous Solana ETF filings. According to Eric Balchunas, the failure of Solana ETF applications to progress highlights the importance of the 19b-4 acknowledgment step.

Based on the flowchart, Balchunas explained that Solana ETF filings never advanced past Step 2, as the SEC did not formally acknowledge them. Without acknowledgment, the process effectively stalled, leading to the exchanges withdrawing their 19b-4 filings. This shows how critical the acknowledgment phase is, as it locks the SEC into a timeline, mandating decisions within set deadlines.

The chart shows that, for Solana ETFs, the lack of progress past Day 14 rendered the filings “dead on arrival.” Comparatively, Canary Capital’s Litecoin ETF has successfully reached the acknowledgment stage.

Litecoin Price Reacts to ETF Filing

After the Nasdaq filed the 19b-4 form, Litecoin’s price jumped 12%. The SEC’s latest acknowledgment gave Litecoin another push, reinforcing market interest. Litecoin’s price climbed steadily, reaching $127.03, as seen in the latest market data. Trading volumes also increased significantly, indicating heightened activity and interest in the asset.

Grayscale, another ETF issuer, also submitted a Litecoin ETF application last week. This added to speculation about institutional involvement in Litecoin ETFs.

Since Gary Gensler’s resignation, multiple altcoin ETF applications have reached the SEC. Some filings stand little chance of approval, but the Litecoin ETF has moved further than others.

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