Litecoin ETF Inches Closer to Reality as Nasdaq Files Form 19b-4 to Begin Trading the Fund

After Canary Capital amended its S-1 registration form earlier on Monday, the Nasdaq filed form 19b-4 to begin trading a Litecoin ETF from the firm.

This recent development follows Canary’s amendment to its S-1 filing, which suggests productive feedback from the SEC. Several analysts have indicated that this move could lead to the approval of Canary’s Litecoin ETF by the SEC. If approved, this fund would mark the first altcoin ETF of 2025.

Canary filed an amendment to its S-1 registration form with the SEC on Monday, which might indicate the approval of Canary’s Litecoin ETF. Several analysts have suggested that this move could lead to the approval of this fund by the SEC.

After Canary’s application to the SEC for a Litecoin ETF in January, ETF analyst Nate Geraci highlighted this development. According to Geraci, if the SEC approves Canary’s ETF, it would be the first altcoin ETF of 2025.

Later on, Geraci noted that the Nasdaq filed a form 19b-4, requesting permission from the SEC to trade Canary’s Litecoin ETF. This recent development follows Canary’s amendment to its S-1 filing, which suggests productive feedback from the SEC.

“Litecoin ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given [that the] SEC gave comments on the S-1, Litecoin is seen as commodity, and there’s new SEC sheriff in town,” fellow ETF analyst Eric Balchunas added.

Canary’s Litecoin ETF could have a significant impact on the asset's price if it gains SEC approval. Litecoin has recently faced bearish pressure, with the lowest daily active addresses since 2023 being one notable example. However, the buzz surrounding this ETF has quickly generated a lot of hype, which could potentially drive new momentum.

Despite this, a Litecoin ETF may not generate as much interest as other altcoin ETFs. The protocol has seen less development than other networks over the years. Additionally, even during bull markets, LTC’s growth has been largely stagnant.

However, there are fewer obstacles for the SEC to approve this fund, making a Litecoin ETF more likely. For example, Litecoin has already been designated as a commodity by the regulator. As a result, there is no ongoing debate over whether the asset should be classified as a security.

Canary has been working on a Litecoin ETF for several months now, and the firm's application to the SEC for a Litecoin ETF in January marked the latest step in that process.

The firm has filed several applications with the SEC for cryptoasset ETFs, ranging from popular candidates like Solana to less conventional ones like Hedera. Notably, Canary is the only issuer currently pursuing an LTC-based product, giving it a clear edge in this market.

If the SEC does approve a Litecoin ETF, Canary would be presented with a substantial business opportunity. The firm would have first-mover advantage, immediately trading its product as other potential issuers rush to get their ETFs up and running.

However, this does not guarantee long-term success, especially considering Grayscale’s performance relative to BlackRock’s despite launching the first Bitcoin ETF.

Nevertheless, these rumors have already sparked significant price increases and whale interest. Canary, in essence, stands to gain a lot from this development. All that remains is for the SEC to take a few more steps in order to launch a new market. If approved, LTC would become the third cryptocurrency in the United States market to have an ETF, following Bitcoin and Ethereum.