- Litecoin ETF advances as Nasdaq files 19b-4 form, marking key regulatory milestone.
- New SEC leadership under Paul Atkins could expedite Litecoin ETF approval process.
- Robust infrastructure bolsters Canary Litecoin ETF’s chances for 2025 SEC approval.
The Canary Litecoin ETF is moving closer to becoming the first altcoin exchange-traded fund (ETF) approved in 2025. Nasdaq has submitted the critical 19b-4 form to the U.S. Securities and Exchange Commission (SEC), a significant step in the regulatory process.
This development follows Canary Capital’s amended S-1 filing, signaling readiness to meet the SEC’s stringent requirements. With Litecoin classified as a commodity and a new crypto-supportive SEC chair expected to take charge, the chances of approval appear stronger than ever.
Regulatory Milestones Strengthen Approval Prospects
Nasdaq’s 19b-4 filing is the second stage in the ETF approval process. This filing enables the SEC to formally begin its review after publication in the Federal Register. The filing also specifies that U.S. Bancorp Fund Services, LLC, will serve as the ETF’s administrator, with U.S. Bank N.A. managing its cash holdings.
Coinbase Custody Trust Company LLC has been chosen to manage Litecoin storage for the ETF. These arrangements showcase the solid infrastructure backing the proposed fund.
Related: SEC Responds to Litecoin ETF Filing as Market Eyes Approval
Canary Capital originally submitted its S-1 filing in October 2024, and the SEC has since provided detailed comments, showing active engagement with the application.
This interaction increases the likelihood of approval, as similar feedback processes preceded the approval of Bitcoin and Ethereum ETFs in 2024. The success of these prior ETFs has set a favorable precedent, further strengthening Litecoin’s chances.
Shifts in SEC Leadership May Boost Approval Odds
Changes at the SEC could play a critical role in the ETF’s approval. Former SEC Commissioner Paul Atkins, known for his favorable stance on cryptocurrency, is expected to become the new SEC chairman under the incoming Trump administration.
Related: Litecoin Will Benefit from Bitcoin ETF Boom: Pro-Litecoin Advocate
This leadership change follows Gary Gensler’s departure, whose term was marked by stricter crypto regulations. Analysts predict the new administration will bring a more supportive approach to crypto assets.
Market watchers, including Bloomberg’s Eric Balchunas, anticipate high approval odds for the Litecoin ETF. The SEC’s acknowledgment of Canary Capital’s filings and rising interest across the crypto community point to Litecoin’s potential as the next major ETF in the space.
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