Canary Capital, a US-based asset management firm has applied to list a Litecoin spot Exchange Traded Fund (ETF). According to the Form S-1 lodged with the US Securities and Exchange Commission (SEC), the firm named the product the Canary Litecoin ETF.

Litecoin ETF: Can It Make the Difference

For one reason most do not know, Litecoin is rarely regarded as a security by the US SEC. Notably, the digital currency is one of the oldest assets in the industry with complete utility status. This push for an LTC ETF product is the first of its kind filed in the United States.

Canary Capital has a high praise for Litecoin as an asset. The firm reiterated in its S-1 filing that Litecoin is one of the longest running blockchains with 100% uptime. It believes Litecoin will offer investors access to enterprise-grade use cases.

The push for a Litecoin ETF succeeds the XRP ETF application filed by Canary Capital earlier this month. With this product, the number of digital currencies linked directly to regulated funds is now growing.

First, 21Shares and VanEck filed applications for Solana ETF with the US SEC earlier this year. Though both application saw their removal from the Cboe Website, it remains on the horizon for proponents in the digital currency ecosystem.

Notably, the chances of approval for these products is considered slim, until Litecoin ETF joined the list. While there are exising ETP products in Switzerland and Germany, the United States’s only institutional LTC exposure is from Grayscale. This is considered a stepping stone for the asset to finally gain regulatory approval for the ETF demand.

With Litecoin generally considered a commodity, it remains to be seen how the US SEC will approach application from Canary Capital filing.

Implication for LTC

Litecoin is one of pioneering Proof-of-Work (PoW) assets whose influence has faded in recent times. Notably, the coin celebrated its 13th year anniversary recently. Despite this, the coin has lost its ranking to newer projects as its price fell by more than 83% from its All-Time High of $412.96.

Already, the impact of the Litecoin ETF product is showing as LTC price has soared 6.5% in 24 hours to $69.70. Should the Canary Capital proposal gain greenlight from the US SEC, it might trigger a new milestone for Litecoin.

An earlier Litecoin price analysis hinted that the coin might finally be ready for a bull run. This ETF offering might help accelerate this price action in a bid to return the coin to its previous ATH.

The post Breaking: Canary Capital Files For Litecoin ETF In The US appeared first on CoinGape.

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