Canary Capital’s Proposed Litecoin ETF Now Appears on DTCC’s “Active and Pre-Launch” ETF List

Exchange-traded funds have long been a focal point of crypto market interest over the years as market participants eye a boost to their preferred assets from capital inflows

A proposed Litecoin exchange-traded fund from Canary Capital appeared on the Deposit Trust & Clearing Corporation’s “active and pre-launch” ETF list with the ticker LTCC.

However, the appearance on this list does not indicate the likelihood of approval.

“It doesn’t mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds,” Bloomberg Senior ETF Analyst Eric Balchunas said on Friday, adding that the estimated odds of approval for the Litecoin ETF remain unchanged.

According to the DTCC website, listed products are still subject to regulatory approval and can only be processed after that.

For example, BlackRock’s Bitcoin ETF product IBIT appeared on the DTCC website as early as August 2023, but it was not until January 2024 that it received the Securities and Exchange Commission’s approval.

The recent appearance of Canary’s proposed Litecoin ETF on the DTCC website follows the SEC opening its portal for public comments on the filing.

This portal is set to close on Tuesday, February 25, 21 days after the ETF filing and the publishing of the 19b-4 from Nasdaq on the Federal Register. For context, the Canary Litecoin ETF appeared on the register on February 4.

The SEC has 45 days from this date to decide to approve or deny the ETF application. It can also extend this deadline for another 45 days for a total of 90.

Meanwhile, Canary Capital is not the only issuer in the running to launch a Litecoin ETF. The SEC is also considering a similar application from CoinShares.

In response to the recent ETF speculations, traders are paying increased attention to Litecoin. As highlighted by crypto analytics firm Santiment Feed on Thursday, February 20, Litecoin’s market cap has already grown 46% this month.

At the same time, daily transaction volumes are up over 240% from August 2024, when it averaged about $2.8 billion, to about $9.6 billion in the past seven days.

At the time of writing, Litecoin is trading around the $134 mark, representing a 3.6% gain over the past 24 hours.