Nasdaq’s Litecoin ETF Filing Could Redefine Crypto ETF

• Nasdaq’s filing seeks to bring Litecoin into the regulated ETF market, offering new financing opportunities.  
• LTC’s unique features, like faster settlement and lower fees, sets it apart from other cryptocurrencies.  
• Approval of the Litecoin ETF could signal  SEC support for diverse cryptocurrency investments.  

Nasdaq submitted a 19b-4 form for the Canary Litecoin ETF, advancing Litecoin’s position as the next crypto for SEC review. The ETF will hold Litecoin, with Coinbase Custody Trust Company LLC as its designated custodian. U.S. Bank N.A. will manage the funds, while U.S. Bancorp Fund Services will serve as the administrator.  

We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that's a huge variable. https://t.co/cKFswPwcr0

— Eric Balchunas (@EricBalchunas) January 15, 2025

A Closer Look at the 19b-4 Filing  

The submission follows Canary Capital’s updated S-1 registration, submitted on the same day. According to Bloomberg ETF analyst James Seyffart, the form is in securing SEC approval. He said,

“The updated S-1 Form hints at SEC interest but does not guarantee acceptance,”

Further, he added that the adoption odds for the Litecoin ETF will take weeks to evaluate. Litecoin’s distinct characteristics might increase approval chances, unlike past Solana ETF submissions.  

Created in 2011, Litecoin has lower costs and faster transactions than BTC. Its unique hashing algorithm supports more autonomous mining.  

Expanding Beyond Bitcoin and Ethereum  

The cryptocurrency ETF environment may grow, with Litecoin joining Bitcoin and Ethereum in seeking SEC approval. This proposed ETF will hold actual Litecoin rather than futures contracts, a feature noted in the S-1 filing.  

Other companies have also filed crypto ETF applications. Canary Capital filed an XRP ETF application in October, following Bitwise and WisdomTree’s efforts. Solana ETF requests from VanEck, Bitwise, and 21Shares remain under SEC consideration.  

The SEC’s hesitancy on cryptocurrency ETFs continues to be scrutinized. Like some other tokens, Seyffart noted that Litecoin might avoid the  security classification.  

Will the SEC Expand Cryptocurrency ETF Horizons?  

As digital assets gain prominence, the SEC faces mounting pressure to approve ETFs for a wider range of cryptocurrencies. Could the token pave the way for a more inclusive crypto  future?  

The outcome of the Nasdaq declaration will determine whether Litecoin joins the limited ranks of accepted  ETFs.