SEC Nears Approval of Litecoin ETF: Sources

Litecoin is reportedly set to see its first Exchange Traded Fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC). According to ETF analyst Eric Balchunas, the S-1 application form for the Litecoin ETF has received a response from the SEC, which seemingly supports predictions that Litecoin is most likely to become the next approved cryptocurrency ETF.

Further highlighting the perceived optimism surrounding the SEC’s new chair, Paul Atkins, Balchunas added, “Having said that, the new chairman of the SEC has not yet taken office, which is a huge variable.”

Litecoin ETF Receives SEC’s Approval?

We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that’s a huge variable. https://t.co/cKFswPwcr0

— Eric Balchunas (@EricBalchunas) January 15, 2025

Balchunas’s statement was in response to Bloomberg’s Crypto Asset Management analyst, James Seyffart, who claimed that Canary Funds had just filed an amended S-1 for their Litecoin ETF filing. Seyffart wrote, “No guarantees — but this might be indicative of SEC engagement on the filing. Still no 19b-4 filing yet though,” as he shared an image of the filing.

Courtesy: Litecoin filing via @JSeyff

The filing states that the ETF, managed by Canary Capital Group LLC, will hold actual Litecoin, and its shares will trade on the Nasdaq Stock Market. However, the offering is currently in the preliminary stage and cannot be sold until the SEC approves the registration. It is not a solicitation or offer in jurisdictions where such sales are restricted.

Amid the speculation surrounding the SEC’s Approval, Grayscale Litecoin Trust (LTC) raised $2.3 million through the private placement of 242,900 new shares on January 9, 2025. The shares, priced based on the Trust’s Net Asset Value (NAV), correspond to 20,482.83821511 Litecoin (LTC). Following this issuance, the total outstanding shares of the Trust now stand at 24,137,200.

From SEC filings, @Grayscale‘s Litecoin Trust announced the private placement of 242,900 new shares, which represent an aggregate of over 20K Litecoin $LTC, the cryptocurrency that underlies the Trust’s assets. This puts the total number of shares issued and outstanding to…

— Litecoin Foundation ⚡️ (@LTCFoundation) January 15, 2025

If approved by the SEC, Litecoin will join the ranks of Bitcoin and Ethereum ETFs, while Solana and Ripple (XRP) ETFs are also awaiting regulatory approval to enter the market.

As of January 15, the cumulative total net inflow for Bitcoin and Ethereum ETFs has reached $35.98 billion and $2.42 billion, respectively, underscoring the massive scale of the cryptocurrency ETF market.

Source