Litecoin ETF By Canary Capital Approval Soon: LTC Founder

Litecoin founder Charlie Lee shared his excitement about Canary Capitals recent filing for a Litecoin ETF. This comes amid growing interest from institutional and retail investors alike. Furthermore, Lee also expressed confidence in the approval of the LTC ETF application soon as crypto ETF products take the lead.

Litecoin ETF Approval Soon？

According to FOX Journalist Eleanor Terrett, in a recent statement, Lee emphasized the increasing demand for Litecoin, evident through the rising value of Grayscale‘s Litecoin Trust. “We’re seeing a lot of institutional interest in Litecoin,” Lee remarked.

Moreover, he highlighted that the Grayscale Litecoin Trust (LTCN) is currently priced at more than double its net asset value (NAV). Lee also pointed out that Litecoin shares many similarities with Bitcoin, as both are considered commodities.

“Given that Litecoin is a commodity similar to Bitcoin, I expect the ETF will be approved soon,” he added. On October 15, Canary Capital submitted its Form S-1 application to the U.S. Securities and Exchange Commission (SEC), seeking approval for a spot Litecoin ETF.

This filing positions Canary Capital as the first firm to file for a Litecoin ETF in the U.S. It marked a major development in the crypto investment landscape, where most ETF applications have historically focused on more prominent cryptocurrencies such as Bitcoin, Ethereum, and XRP.

After the latest filing, the LTC price gained significantly, surging to a monthly peak of $75.88, bouncing back from a low of $62.12. However, owing to the uncertainty around approval and overall volatility in the market, Litecoin price is currently trading at $71.44, dropping 5.04%.

Analysts Opine on LTC ETF Application

At the time, James Seyffart, an ETF analyst at Bloomberg Intelligence, drew attention to Canary Capitals filing on X, stating, “New ETF issuer Canary, who previously filed for an XRP ETF, has now submitted an application for a Litecoin ETF.”

Seyffart also pointed out that Litecoin is already represented in Europe through exchange-traded products (ETPs). “There are already some ETPs that hold Litecoin, such as $LITE in Switzerland from CoinShares and $ELTC in Germany from ETC Group,” Seyffart commented. He also mentioned the presence of the Grayscale Litecoin Trust in the U.S., which trades under the symbol LTCN.

This latest ETF filing stands out because it focuses solely on Litecoin, unlike previous applications that have primarily targeted major cryptocurrencies. Bloombergs senior ETF analyst, Eric Balchunas, also commented on the significance of this filing, stating:

“It‘s not just the first Litecoin ETF in the U.S., but potentially the first one globally. Even 21Shares doesn’t have one at this point.”

Canary Capitals move comes shortly after the firm filed for an XRP ETF on October 8, drawing considerable attention from the crypto community. The XRP filing followed similar moves by Bitwise, a leading crypto asset manager. If approved, both the Litecoin and XRP ETFs would offer new avenues for traditional investors to gain exposure to these assets.

However, the approval of both these ETFs hangs in balance as the SEC remains cautious. After the failure of spot Ethereum ETFs, launched in July 2024, the agency is expected to maintain an extra layer of scrutiny toward similar products.