Canary Capital has taken a significant step into the crypto world by filing with the SEC its first exchange-traded fund application for Litecoin.
Canary Capital, a new digital asset investment firm founded by former Valkyrie Funds founder Steven McClurg and just one month old, has filed its first Litecoin (LTC) exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC).
The company also applied for an XRP ETF last week. It was reported that Canary aims to be a leader in the cryptocurrency world.
Canary Capital stated that Litecoin plays an important role in the cryptocurrency ecosystem and offers an attractive option for investors. The company emphasized that Litecoin attracts attention with its reliability and long-term uninterrupted operation.
He stated that the 19b-4 application, which is critical for the SEC's approval process, has not been made, and that this step would initiate a mandatory rule change for the fund to be traded on the exchange.
Analyst James Seyffart noted that Litecoin could have the status of a commodity like Bitcoin, but said that it would be difficult to get an ETF approved under the current administration because it does not currently have a sufficiently liquid futures market.
It was also reported that the upcoming presidential elections could change the situation, especially considering Donald Trump's promise to dismiss SEC Chairman Gary Gensler.
Litecoin up 10%
Following the company's application, LTC, which had been calm for a long time, experienced a sudden increase. With the announcement of the application, LTC increased by 10% and climbed from $66.2 to $73. At the time of writing, LTC is finding buyers at $71.3.
Stay tuned for new information.