Canary Capital has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for its new exchange-traded product, the Canary Litecoin ETF. The ETF will provide investors with exposure to the value of litecoin (LTC), tracking the Coindesk Litecoin Price Index.

Canary Capital Targets Litecoin Market With New ETF Filing

The Canary Litecoin ETF, sponsored by Canary Capital Group LLC, aims to provide investors with exposure to the price of litecoin (LTC), a digital asset created by Charlie Lee in 2011. The ETF will hold LTC and calculate its net asset value (NAV) daily by reference to Coindesk's Litecoin Price Index. The ETF is intended to trade on a national exchange, subject to regulatory approval, and is designed for investors who prefer a regulated vehicle over holding LTC directly. Canary Capital plans to provide direct access to the market through an exchange-traded fund, simplifying the investment process for LTC enthusiasts.

According to the filing, the ETF will not use derivatives and will instead hold LTC directly. The trust will sell and repurchase its shares in large blocks, called “baskets.” These baskets will be priced based on the value of the litecoin held by the trust, minus any operating expenses and obligations. This mechanism ensures that the shares are closely tied to the underlying value of LTC. The structure of the ETF allows institutional investors and authorized participants to trade in large quantities, while individual investors can buy and sell shares on the secondary market, potentially at prices above or below NAV.

The ETF is classified as an emerging growth company under the Jumpstart Our Business Startups Act of 2012, which allows for reduced reporting requirements. While the ETF is not a registered investment company, it operates under specific guidelines set forth by the Securities Act of 1933. Canary Capital has appointed CSC Delaware Trust Company as its trustee and various service providers to handle the fund’s administrative, custody, and regulatory responsibilities. The news comes after Canary Capital filed for an XRP ETF last week on October 8.

What do you think about Canary’s Litecoin ETF filing? Please share your thoughts and opinions on the subject in the comments section below.
#binance #wendy #bitcoin #eth #bnb $BTC $ETH $BNB