Nashville-based asset supervisor Canary Capital filed an S-1 kind for a Litecoin (LTC) exchange-traded fund (ETF) with the US Securities and Change Fee (SEC) on Oct. 15.
Canary’s submitting is the primary software for a Litecoin-linked spot ETF within the US and comes lower than per week after the asset supervisor’s XRP ETF submitting on Oct. 8.
Canary Capital CEO and founder Steven McClurg was beforehand Valkyrie Investments chief funding officer, having co-founded the asset supervisor together with Leah Wald.
Totally different from Solana ETF filings
Alex Thorn, head of analysis at Galaxy Digital, informed CryptoSlate that Litecoin is usually thought of to have been a “honest launch,” which means there was no pre-mine or token sale.
Moreover, as a result of Litecoin is predicated on a proof-of-work consensus mannequin, there was no providing of LTC by any entity to public or non-public buyers. Thorn added:
“The SEC hasn’t acknowledged its place on the matter, nevertheless it’s unlikely that Litecoin could possibly be thought of to have been provided as a safety since there was no providing in any respect. Thus, issuers ought to theoretically have the identical pathway to launch spot-based Litecoin ETFs in america as they did for Bitcoin.”
In line with Thorn, the identical can’t be stated about spot Solana ETFs for the reason that blockchain is predicated on a proof-of-stake consensus algorithm and performed a token sale.
Thorn acknowledged that this makes the preliminary launch truth sample of Solana totally different from Bitcoin and Litecoin. Moreover, the SEC presently alleges in its lawsuit in opposition to Coinbase that SOL is a “crypto asset safety.”
Thorn stated:
“[This] is why some analysts have prompt that SOL ETF filings are bets on a Trump victory in November, as a change within the SEC’s strategy to classifying crypto property as securities would possible be required earlier than the company would approve the itemizing of SOL ETFs.”
Market dominated by Grayscale
In line with Bloomberg ETF analyst James Seyffart, ETPs like CoinShares’ LITE in Switzerland and ETC Group’s ELTC in Germany already maintain Litecoin. In the meantime, the US market is presently solely tapped by the Grayscale Litecoin Belief (LTCN).
In line with a CoinShares report, the LTC funds provided in Europe maintain $11.5 million in mixed property beneath administration (AUM), which represents lower than 10% of the whole AUM of Litecoin-related ETPs globally.
In the meantime, LTCN has $127.4 million in AUM, which makes up the remaining 93% of the cash invested in Litecoin-related ETPs worldwide.
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