- Nasdaq files for a spot Litecoin ETF as SEC begins review with a 45-day decision timeline.
- Litecoin classified as a commodity by CFTC, boosting odds of ETF approval in 2025.
- Litecoin price jumps 24% to $129.49 following news of ETF filing with Nasdaq.
Canary Capital has formally submitted a 19b-4 form to Nasdaq to list and trade a spot Litecoin (LTC) exchange-traded fund (ETF). This will be the first altcoin related ETF approved in 2025, signifying an important step in the rising and recognitions of cryptocurrency based financial products.
The 19b-4 form from Nasdaq initiates the review period for the Litecoin ETF, with the SEC having 45 days to approve or disapprove, and US Bancorp Fund Services as administrator.
Canary Capital’s amended S-1 filing names US Bancorp Fund Services as the ETF administrator, while Coinbase Custody Trust and BitGo will serve as custodians for Litecoin holdings. Analysts suggest that Litecoin’s established status as a commodity and its lack of regulatory challenges significantly enhance the ETF’s likelihood of approval.
Bloomberg analysts Eric Balchunas and James Seyffart noted that the updated S-1 Form reflects active engagement from the SEC, a promising sign for approval prospects. According to Seyffart, Nasdaq’s submission triggers a formal review process, giving the SEC 45 days to make a decision, with a possible extension of another 45 days.
Litecoin ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given SEC gave comments on the S-1, litecoin is seen as commodity and there’s new SEC sheriff in town. https://t.co/DaE7jxlb9s
— Eric Balchunas (@EricBalchunas) January 16, 2025
Balchunas expressed confidence in the Litecoin ETF’s approval, citing its compliance with regulatory requirements. In contrast, Solana and XRP ETFs face hurdles due to ongoing litigation and classification concerns. Balchunas highlighted a shift in SEC leadership as a factor potentially favorable to the approval of cryptocurrency-based ETFs in 2025.
Experts expect a wave of ETF approvals in 2025 and Litecoin is among the ones that are on top of the list. Bitcoin and Ethereum products remain top priorities, but XRP and SOL ETFs could be delayed because of ongoing regulatory hurdles. But, given the incoming U.S. administration looks more favorable toward wider cryptocurrency adoption, these odds may improve.
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