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SEC Nears Approval of Litecoin ETF: Sources
Litecoin is reportedly set to see its first Exchange Traded Fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC). According to ETF analyst Eric Balchunas, the S-1 application form for the Litecoin ETF has received a response from the SEC, which seemingly supports predictions that Litecoin is most likely to become the next approved cryptocurrency ETF.
The development comes as a significant boost to the cryptocurrency market, with investors eager to get their hands on the newly approved funds. As per Balchunas’ statement, “Having said that, the new chairman of the SEC has not yet taken office, which is a huge variable.” This comment highlights the potential uncertainty surrounding the approval process.
Notably, this news follows rumors and speculations surrounding the possibility of SEC’s approval for Litecoin ETFs. According to Bloomberg’s Crypto Asset Management analyst, James Seyffart, Canary Funds had just filed an amended S-1 for their Litecoin ETF filing. This development has sparked excitement among investors, with many anticipating a potential surge in Litecoin’s value.
The proposed ETF, managed by Canary Capital Group LLC, will reportedly hold actual Litecoin and trade on the Nasdaq Stock Market. However, it is essential to note that this offering remains in its preliminary stage, and the shares cannot be sold until the SEC formally approves the registration.
It’s worth mentioning that Grayscale Litecoin Trust (LTC) has raised $2.3 million through a private placement of 242,900 new shares on January 9, 2025. The shares were priced based on the Trust’s Net Asset Value (NAV), which translates to 20,482.83821511 Litecoin (LTC). This move brings the total outstanding shares of the Trust to 24,137,200.
The potential approval of Litecoin ETFs also sheds light on the current state of the cryptocurrency market. With Bitcoin and Ethereum ETFs already receiving regulatory backing from the SEC, this development could see Litecoin join their ranks in a significant move for the industry.
In related news, Solana and Ripple (XRP) ETFs are awaiting regulatory approval to enter the market. Currently, the cumulative total net inflow for Bitcoin and Ethereum ETFs stands at $35.98 billion and $2.42 billion respectively, highlighting the massive scale of the cryptocurrency ETF market.
It is essential to monitor these developments closely as investors await more news on this matter.
Source: www.cryptonewsz.com
