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Litecoin ETF in the Works? SEC’s Shocking Move After Gensler’s Exit!
The US cryptocurrency market has just witnessed a dramatic surge as the Securities and Exchange Commission (SEC) is now reviewing a proposal for the Canary Litecoin ETF, potentially paving the way for approval. This sudden shift in regulatory stance comes hot on the heels of Gary Gensler’s departure from his position as SEC Chair.
Following the departure of Gensler, who was notorious for his strict approach to cryptocurrency regulation, the landscape appears to be shifting towards a more open-minded outlook under Acting Chair Mark Uyeda and Hester Peirce’s new crypto task force. This change in leadership could signal the dawn of a new era in crypto investment.
The proposed Litecoin ETF aims to simplify Litecoin investing by tracking the CoinDesk Litecoin Price Index (LTX) and holding Litecoin through secure custody frameworks. Investors would no longer need to deal with digital wallets, as they would be able to own shares in the ETF instead. Large transactions would be handled by special financial firms using cash, ensuring smooth and regulated processes.
The approval process has reached a critical phase, marked by Nasdaq’s 19b-4 application on January 15th. The SEC now has up to 240 days to either approve or reject the proposal, although some speculate that a decision could be made sooner.
If approved, this Litecoin ETF would represent a groundbreaking development for the crypto market, as it would enable ordinary investors to participate without needing to navigate complex digital wallet processes.
Source: coinpedia.org
