Canary’s Amended S-1 Increases Confidence that Litecoin ETF Approval is Imminent

Canary Capital’s recent amended S-1 filing for its proposed Canary Litecoin exchange-traded fund (ETF) has increased optimism that Litecoin may soon become the next cryptocurrency in the U.S. to receive ETF approval, following Bitcoin and Ether in 2024.

Bloomberg analysts suggest the filing, submitted on January 15, validates ongoing rumors that the U.S. Securities and Exchange Commission (SEC) is reviewing Litecoin ETF applications. Eric Balchunas, a Bloomberg ETF analyst, expressed confidence that Litecoin is likely to be the next coin approved, though he noted that upcoming leadership changes at the SEC remain a significant uncertainty.

Amended S-1 forms are typically filed after ETF issuers have received feedback from the SEC. However, another step—submitting a 19b-4 filing—is needed to officially start the approval process, as explained by another Bloomberg analyst, James Seyffart. Solana has made more progress in this regard, with various ETF issuers, including Bitwise, VanEck, 21Shares, and Canary, having filed 19b-4s for a Solana spot ETF in November.

Source: Eric Balchunas

Canary’s amended filing includes changes related to its agreements with crypto custodians Coinbase and BitGo, along with various legal, marketing, tax, and accounting matters. If the ETF is approved, Litecoin would become the third spot crypto ETF in the U.S., joining Bitcoin and Ether.

The filing comes as Litecoin’s price surged more than 15% from January 15-16, driven by significant buying activity from Litecoin whales and sharks. Blockchain analytics firm Santiment reported that 250,000 Litecoin worth approximately $29 million was purchased since January 9.

Source: Santiment

The amendment also coincides with the inauguration of the U.S. President-elect Donald Trump, whose administration is expected to be more supportive of cryptocurrency. The SEC chair, Gary Gensler, will be replaced by Paul Atkins, who is anticipated to foster a more crypto-friendly regulatory environment.

XRP is also in the running for potential SEC approval for a spot ETF. JPMorgan analysts forecast that a Solana ETF could attract $3 billion to $6 billion in assets, while an XRP ETF could bring in between $4 billion and $8 billion in the first year. Balchunas suggests a combined $14 billion in assets for both Solana and XRP ETFs over this period seems like a reasonable estimate.