SEC Acknowledges Canary Capital's Litecoin ETF Filing, Triggering 240-Day Approval Deadline

The SEC has officially acknowledged Canary Capital's Litecoin ETF filing under 19b-4, triggering a strict 240-day deadline for approval or rejection.

The Securities and Exchange Commission (SEC) has officially acknowledged Canary Capital’s Litecoin (LTC) exchange-traded fund (ETF) filing under Rule 19b-4. This triggers a strict 240-day deadline for the SEC to approve or reject the ETF application. Notably, this marks the first altcoin ETF filing to reach this stage after the Ethereum (ETH) ETF approval in December 2023.

As highlighted by ETF analysts Eric Balchunas and James Seyffart earlier this year, there have been discussions among analysts about which altcoin ETF, if any, could stand a chance of being approved. According to their analysis, a Litecoin ETF appeared to be a stronger candidate than Solana (SOL) or XRP (XRP) ETFs. This prediction now aligns with the latest acknowledgment by the SEC.

“This is the altcoin 19b-4 to be acknowledged,” Balchunas noted. “The rest were told to withdraw by Gensler’s SEC. Throw in the comments from the SEC on the S-1, and this filing is by far the furthest along, checking all the boxes. The question now is whether the SEC will wait the full 240 days or approve more rapidly.”

Balchunas Highlights Solana ETF Failures: Why 19b-4 Acknowledgment Matters

This milestone in the SEC’s ETF approval process is especially noteworthy when considering the historical context of previous Solana ETF filings. According to ETF analyst Eric Balchunas, the failure of Solana ETF applications to progress serves as a key point of reference in understanding the significance of the 19b-4 acknowledgment step.

Based on the flowchart, we can see that Solana ETF applications never advanced past Step 2, as the SEC did not formally acknowledge them. Without acknowledgment, the process effectively stalled, leading to the exchanges withdrawing their 19b-4 filings. This shows how critical the acknowledgment phase is, as it locks the SEC into a timeline, mandating decisions within set deadlines.

The chart shows that, for Solana ETFs, the lack of progress past Day 14 rendered the filings “dead on arrival.” Comparatively, Canary Capital’s Litecoin ETF has successfully reached the acknowledgment stage.

Litecoin Price Reacts To ETF Filing

Following the 19b-4 form filing by the Nasdaq, Litecoin’s price surged 12%. The SEC’s latest acknowledgment gave Litecoin another push, reinforcing market interest. Litecoin’s price climbed steadily, reaching $127.03, as seen in the latest market data. Trading volumes also increased significantly, indicating heightened activity and interest in the asset.

Grayscale, another ETF issuer, also submitted a Litecoin ETF application last week. This adds to the speculation and institutional involvement in the potential Litecoin ETF.

Since Gary Gensler’s resignation, we’ve seen several altcoin ETF applications hitting the SEC. Some of these filings stand little chance of being approved (eg. ZK-proof ETF), but the Litecoin ETF has moved further in the process than the others.