Why a Litecoin ETF Is Likely to Be Approved Next: Senior ETF Analyst at Bloomberg

Litecoin will likely be the next crypto asset to receive an ETF wrapper in the US, according to Senior Bloomberg ETF Analyst Eric Balchunas.

After SEC Spot approval Bitcoin (BTC) Exchange Traded Funds (ETFs) and Ethereum (ETH) In 2024, the big question for many crypto market participants is which crypto assets will get the highly coveted traditional investment shell next.

While most Chatter He’s been around Solana (Sol) And XRPA Bloomberg One analyst has hinted at an unlikely competitor to jump on this fan favorite: Litecoin (LTC). This is why.

SEC participation

Litecoin will likely be the next crypto asset to receive an ETF wrapper in the US, according to Senior Bloomberg ETF Analyst Eric Balchunas.

Balchunas He expressed this opinion on Wednesday, January 15, in response to reports that Canary Capital had filed an update to its S-1 filing for its Litecoin ETF, a potential indication of SEC involvement. An S-1 is a registration statement filed with the Securities and Exchange Commission (SEC) by companies seeking to launch a new security.

Canary Capital updated its filing to show that US firm Bancorp Fund Services will manage the proposed ETF, while Coinbase and BitGo will provide custody services for the fund’s Litecoin.

Bloomberg Balchunas emphasized that the update supports Litecoin’s prospects for an ETF wrapper next, though he noted that an impending change in SEC leadership could be a big deciding factor.

The statement comes next week, as current SEC Chairman Gary Gensler is scheduled to step down and Donald Trump takes over as chairman. While Trump He was nominated With crypto-friendly Paul Atkins taking over from Gensler, it is unclear when the nomination will receive Senate approval.

Meanwhile, great fellow Bloomberg ETF Analyst James Seyfart He was accused Market participants are anticipating the 19b-4 filing, stressing that it will confirm that efforts are underway to approve or reject the offer.

new: @CanaryFunds They have just filed an amended Form S-1 to offer a Litecoin ETF. There are no guarantees – but this may be an indication of the SEC’s involvement in the registration process. There is still no 19b-4 filing yet

(19b-4 will actually start the potential approval/denial clock) h/t @isabeltanley pic.twitter.com/wFtNOmbmYx

– James Seyff (@JSeyff) January 15, 2025

This form explains the listing rules and product rationale. Unlike the S-1, which is filed by the prospective issuer, the 19b-4 is filed by self-regulatory organizations, usually the exchange where the ETF plans to trade. In the case of Canary Capital’s planned Litecoin ETF, this will be Nasdaq.

No surprise?

With Litecoin considered by some to be one of the oldest and least used crypto assets, many have expressed shock that the token might get an ETF before Solana and XRP. However, it should not be surprising, given the current SEC leadership’s stance on crypto asset classification.

Ltc? Why? https://t.co/0cqQahyhcj

– Jordan23_45_42 (@jordan23_45_42) January 16, 2025

The Gensler-led agency has repeatedly expressed concerns about most crypto assets, with the exception of Bitcoin, and specifically named Solana and XRP as unregistered securities. Ongoing enforcement actions.

With this in mind, it’s easy to see why Litecoin received agency approval so easily. It shares many similarities with Bitcoin, including a less active role for its original developers.

Adjusting for Canary Capital’s recent S-1 filing, Litecoin unsurprisingly outperformed the top 20 crypto assets by market cap to trade nearly 17% higher on the day at over $119.