Litecoin ETF May Be the Next Cryptocurrency ETF Approved in the US

A Litecoin ETF may be the next cryptocurrency ETF to be approved in the United States given the current circumstances.

Bloomberg Senior ETF Analyst Eric Balchunas has predicted that a Litecoin ETF may be the next cryptocurrency ETF to be approved in the United States. This prediction comes after Canary Capital filed an amended S-1 registration form in relation to its Litecoin ETF proposal.

Canary Capital had submitted the S-1 registration form for the Litecoin ETF with the U.S. Securities and Exchange Commission (SEC) in October 2024. On Wednesday, the company filed an amended version of this form. According to the filing, U.S. Bancorp Fund Services would act as the administrator of the ETF, while Coinbase Custody Trust and BitGo would act as the custodians for the Litecoin of the fund.

Some of the industry watchers including the Bloomberg analysts have suggested that that the modification of the filing could be an indication of SEC’s interest. Another Bloomberg ETF analyst, James Seyffart pointed out that the amendment could mean the SEC has offered comments on the application. However, there has been no 19b-4 filing made, which is a formal application for rule change that initiates the approval process.

“We had heard chatter that the Litecoin S-1 had gotten comments back from [the] SEC,” said Balchunas in a post on X (formerly Twitter). He also said that this is in line with his earlier claim that Litecoin is ‘most likely’ to be the next cryptocurrency ETF in the United States.

The approval of a Litecoin ETF would mark a significant development in the cryptocurrency ETF space. Currently, only futures-based cryptocurrency ETFs are available in the United States, with the SEC yet to approve any spot crypto ETF.

The new SEC leadership, including Gary Gensler, the current SEC chair, is set to step down on Monday. Former SEC commissioner Paul Atkins, who has expressed support for the cryptocurrency sector in the ETF approval process.