The SEC Pauses Green Light for Canary Capital's Litecoin ETF
SEC Delays Decision on Canary Capital's Litecoin ETF Proposal
The US Securities and Exchange Commission (SEC) held back from granting approval to a new Litecoin crypto exchange-traded fund on Monday. Instead, they pushed the decision back, a routine move when considering such applications.
Nashville-based Canary Capital, the asset manager behind the proposed ETF, submitted the paperwork back in October. The SEC is currently evaluating numerous altcoin ETF proposals, following their approval of spot Bitcoin ETFs last year—a move that broke records for success in the ETF market.
The SEC's hesitation comes after a decade of rejecting Bitcoin funds. However, they warmed up to Ethereum ETFs shortly after. With a new, crypto-friendly President in office, asset managers are taking the opportunity to submit applications for other digital asset-related ETFs. Top contenders include Solana, XRP, and Cardano.
While the SEC often delays decisions on proposed products, they recently postponed decisions on XRP and Dogecoin applications. Litecoin, a proof-of-work cryptocurrency and the 25th largest digital coin by market cap, is a forked version of Bitcoin launched by former Google employee Charlie Lee in 2011.
Currently, Litecoin is down by 2.2% over the past 24 hours, trading at over $83, according to CoinGecko data.
The SEC’s further scrutiny of the Canary Litecoin ETF reflects their ongoing apprehension towards cryptocurrency ETFs, as they seek to prevent fraud and protect investors. It's unclear when they will make a decision, but one thing's for sure—the rising interest in cryptocurrency-based ETFs isn't slowing down anytime soon.
- Despite Canary Capital's submission of paperwork for a Litecoin ETF in October, the US Securities and Exchange Commission (SEC) has delayed its decision, a common practice in considering such applications.
- The SEC's evaluation of numerous altcoin ETF proposals is a reaction to their approval of spot Bitcoin ETFs last year, a milestone in the ETF market.
- In contrast to a decade of Bitcoin ETF rejections, the SEC has shown a warmer attitude towards Ethereum ETFs, and with a crypto-friendly President, other digital asset-related ETFs are being submitted, including Solana, XRP, and Cardano.
- The SEC's ongoing scrutiny of the Canary Litecoin ETF is a reflection of their ongoing apprehension towards cryptocurrency ETFs, as they aim to prevent fraud and protect investors.
- Litecoin, a proof-of-work cryptocurrency and the 25th largest digital coin by market cap, is a forked version of Bitcoin launched by former Google employee Charlie Lee in 2011.
- The SEC's decision on the Canary Litecoin ETF may be uncertain, but the rising interest in cryptocurrency-based ETFs is undeniable.
- CoinGecko data shows that Litecoin is currently down by 2.2% over the past 24 hours, trading at over $83.
- Decentralized finance (DeFi) on platforms like Ethereum, investing in altcoins, and staking on crypto exchanges are all part of the broader technology landscape shaping modern finance.
- As interest in cryptocurrencies and blockchain technology continues to grow, we may see more development in Decentralized Applications (DApps), crypto exchanges, and the issuance of tokens.
