A Litecoin exchange-traded fund (ETF) might soon become the next spot crypto ETF to gain approval in the United States, according to Eric Balchunas, Bloombergโs Senior ETF Analyst. Balchunas shared this prediction on Wednesday following Canary Capitalโs updated filing of an S-1 form for its Litecoin ETF.
The S-1 form, a regulatory requirement for new securities, was filed with the Securities and Exchange Commission (SEC) and indicates progress toward regulatory approval.
Balchunas pointed out that Canary Capital appears to have received feedback from the SEC on its Litecoin ETF filing, which aligns with his earlier prediction that Litecoin could be the next cryptocurrency to achieve ETF status.
However, Balchunas highlighted a key uncertainty: the incoming leadership of the SEC. With Gary Gensler stepping down as SEC Chair next Monday, President-elect Donald Trump has nominated crypto-supportive Paul Atkins to replace him. While Atkinsโ nomination is seen as favorable for crypto innovation, Senate confirmation remains pending.
Analysts Weigh In on Filing Progress
James Seyffart, another Bloomberg analyst, noted that Canaryโs amended filing could signify active communication between the SEC and the fundโs issuer. He added that a 19b-4 filing, a proposal for a rule change by a self-regulatory organization, would be a stronger indicator of imminent approval.
Canary originally submitted its S-1 form for the Litecoin ETF in October 2024. The updated filing confirms U.S. Bancorp Fund Services as the ETFโs administrator, with Coinbase Custody Trust and BitGo designated to securely hold the Litecoin backing the fund.
Litecoinโs Strong Track Record
Litecoin has been a reliable blockchain since its inception in 2011, boasting 100% uptime and widespread enterprise adoption. Canary emphasized these attributes in its filing last October, presenting Litecoin as a robust and secure investment option.
Currently the 25th largest cryptocurrency by market capitalization, Litecoin has a market cap of $8.9 billion. It experienced a 15% price surge within the past 24 hours, trading at $118.54 at the time of writing.
The success of U.S. spot Bitcoin and Ether ETFs has fueled interest in ETFs based on other altcoins, including Solana and XRP. A recent JPMorgan report projected that Solana and XRP ETFs could attract as much as $13.6 billion in fresh investments within six to 12 months of approval.
As regulatory discussions progress, Litecoinโs proven stability and growing institutional interest may position it as a front-runner in the next wave of spot crypto ETFs.