Bitrabo Editorial
In an important shift within the cryptocurrency sector, asset management company Canary Capital has submitted an S-1 registration to the US Securities and Exchange Commission (SEC) to establish the nation’s first spot Litecoin ETF.
Canary Capital Aims for Litecoin ETF
In a statement released recently, Canary Capital pointed out that Litecoin presents a “unique and compelling investment opportunity.” They mentioned its impressive performance, noting that it has achieved 100% uptime since inception, which they believe supports their aim to manage a Litecoin ETF for greater market exposure.
The firm also highlighted Litecoin’s position as a primary cryptocurrency for actual payments, especially through its collaboration with BitPay, a major player in the payment processing field.
Additionally, Canary Capital has applied for an XRP ETF, showcasing a rising institutional focus on cryptocurrency investments.
This initiative aligns with a similar ETF filing by investment firm Bitwise, indicating a growing trend among financial entities to delve into crypto-based financial instruments.
Debate: Commodity or Security?
While interest in XRP continues to expand, the ongoing legal dispute between Ripple and the SEC raises concerns about the approval of an XRP ETF.
The classification of XRP as either a commodity or a security remains contentious, with the latter classification presenting major challenges for regulatory acceptance.
However, a positive statement from the US Commodity Futures Trading Commission (CFTC), which labeled Litecoin as a commodity in a case against KuCoin earlier this year, could aid in the approval of the proposed Litecoin ETF.
This classification may lead to a more straightforward regulatory pathway for the spot Litecoin ETF, as commodities typically encounter fewer obstacles than those classified as “securities.”
As of now, LTC has seen an increase of over 3%, bringing its price to $68.73, with a brief spike above $70 following the filing announcement.
Featured image from DALL-E, chart from TradingView.com