- Nasdaq files are for Litecoin ETF approval, with U.S. Bancorp Fund Services administering them.
- Litecoin’s price surged over 24%, reaching $129.49 after the filing.
- SEC leadership change could foster a more crypto-friendly regulatory approach, speeding up approvals.
Nasdaq has submitted a pivotal 19b-4 form to the U.S. Securities and Exchange Commission (SEC) to seek approval for a spot Litecoin (LTC) exchange-traded fund (ETF). The exchange filed a 19b-4 form on behalf of Canary Capital for the “Canary Litecoin ETF.” The form outlines that U.S. Bancorp Fund Services will administer the ETF, with U.S. Bank N.A. overseeing cash custody and Coinbase Custody Trust Company LLC managing Litecoin custody.
The 19b-4 filing represents the second phase of the ETF approval process, following Canary Capital’s amended S-1 form submitted earlier. Once acknowledged and published in the Federal Register, this document triggers the SEC’s official review. The SEC approved Bitcoin and Ethereum spot ETFs in 2024, signaling potential openness toward other crypto-based ETFs. Bloomberg Senior ETF Analyst Eric Balchunas suggested that Litecoin could become the first altcoin-related ETF approved in 2025, emphasizing the ETF’s strong compliance record.
Litecoin ETF Filing Sparks 24% Price Surge
Another Bloomberg analyst, James Seyffart, cautioned that an amendment to the S-1 form doesn’t guarantee approval but shows the SEC’s engagement. Seyffart highlighted that Litecoin, unlike Solana, is not deemed a security by the SEC, which increases its chances of approval. Market analysts believe the application could receive SEC acknowledgment within weeks, potentially setting a precedent for other altcoin ETFs.
Following Nasdaq’s filing, Litecoin’s price surged by over 24%, reaching $129.49, marking its largest daily gain among the top 25 cryptocurrencies by market cap. On-chain analytics from Santiment revealed that investors holding more than 10,000 LTC accumulated an additional 250,000 LTC during the past week, fueling bullish sentiment.
The ETF filing coincides with a shift in SEC leadership under President-elect Donald Trump’s administration. Former Commissioner Paul Atkins, a known cryptocurrency advocate, is being considered for the SEC chair position after Gary Gensler’s departure. Industry experts see this transition as an opportunity for a more crypto-friendly regulatory approach, potentially accelerating ETF approvals.
If approved, the Canary Litecoin ETF could significantly impact Litecoin’s market position and price momentum. While the cryptocurrency recently faced bearish pressures, including a dip in daily active addresses, the ETF buzz has sparked renewed optimism. Eric Balchunas and Nate Geraci, prominent ETF analysts, believe this development ticks all the right boxes, setting the stage for Litecoin’s ETF approval in 2025.
The broader market’s positive response underscores the growing interest in crypto-based financial products. Litecoin could solidify its position in the evolving crypto landscape with institutional backing and regulatory clarity.
Related Reading: Litecoin Gains Momentum with Canary Capital’s S-1 Amendment
