Canary Capital's Litecoin ETF adds another contender to the race, but will the SEC's new leadership give LTC an edge over Solana and XRP?
Litecoin joins the ETF race
Race for Crypto ETFs In the US, there may be a new competitor, and this time it is Litecoin (ltc).
On January 16, Canary Capital, a digital asset manager and cryptocurrency fund, filed an amended Form S-1 for its proposed Litecoin exchange-traded fund. Bloomberg ETF analyst James Seyphart shared the update on X.
An amended S-1 filing indicates that the issuer is actively addressing regulatory concerns, often including comments from the SEC. While this does not guarantee approval, it suggests ongoing discussions with regulators.
However, the most crucial step — the 19b-4 filing — is still missing, meaning the official clock for SEC approval or rejection has not yet begun.
“This bodes well for our outlook that Litecoin will likely be the next coin approved,” said Eric Balchunas, a Bloomberg ETF analyst, but he also noted that the looming leadership changes at the SEC remain “variable.” "Big."
For context, ETFs allow investors to gain exposure to assets such as cryptocurrencies without directly owning them. If approved, the Litecoin ETF could become the third largest cryptocurrency ETF in the US, after Bitcoin (Bitcoin) and Ethereum (Ethereum).
The market seems to be responding to these whispers. The price of LTC jumped more than 16% over the past 24 hours as of January 16, reaching $117.92, making it the fourth-biggest gainer among the top 100 cryptocurrencies by market cap.
According to on-chain analytics firm Santiment, this rally is fueled by “whales” — large investors with at least 10,000 Litecoins — who have added 250,000 coins since January 9.
Santiment also noted that “Litecoin has decoupled from other altcoins,” hinting that the momentum may be more than temporary.
Solana and XRP are leading the way
The race for cryptocurrency ETFs is heating up in the US, and while Litecoin has entered the fray, Solana (Sol) seems to have come a long way in this process.
At least five major firms — VanEck, Grayscale, 21Shares, Bitwise and Canary Capital — have filed Forms 19b-4 for Solana exchange-traded funds since November, moving those filings to formal SEC review. This puts Solana ahead of Litecoin on the timeline for potential approval.
The deadlines for these applications are quickly approaching. Grayscale's Solana ETF comes in first, with answer Due by January 23.
The other four issuers, including VanEck and Bitwise, face preliminary decisions by January 25, 45 days since the SEC began its formal review.
However, approval is far from guaranteed. The SEC has historically been cautious about spot cryptocurrency ETFs, especially for assets without a robust, regulated futures market.
Under the leadership of Chairman Gary Gensler, the agency has confirmed that no spot cryptocurrency ETFs will be approved unless there is a regulated, highly interconnected futures market for the asset.
Bitcoin and Ethereum have met this requirement through their futures markets on the Chicago Mercantile Exchange, but Solana does not yet have this infrastructure.
Meanwhile, there is a race for a spot on Ripple (XRP) ETF is also picking up speed. Four firms — WisdomTree, Bitwise, 21Shares, and Canary Capital — have filed, and WisdomTree's filing requires a response from the SEC by January 16.
The risks are high. Banking giant JP Morgan It is estimated that the Solana and XRP ETFs alone could generate up to $14 billion in their first year. VanEck's Matthew Siegel shared JPMorgan's outlook on X.
For Solana specifically, expectations indicate an influx of between $3 billion and $6 billion. On the other hand, XRP could attract between $4 billion and $8 billion.
Balchunas commented on the forecast, noting that although his team has not yet issued an official forecast, JPMorgan's estimates seem reasonable.
Whether Solana or XRP will be able to break through the SEC's hurdles first — or if Litecoin leaps ahead — remains a question.
Gensler out, Atkins in: What this means for cryptocurrency ETFs
The cryptocurrency industry is on the cusp of a profound regulatory shift as leadership at the Securities and Exchange Commission prepares for a sweeping overhaul.
On January 20, outgoing SEC Chairman Gary Gensler, known for his aggressive stance on cryptocurrency regulation, will step down from his position.
Gensler departure coincides with opening Donald Trump as the 47th President of the United States, marking the beginning of a new chapter for the Securities and Exchange Commission under the law command Paul Atkins, Trump's choice for president.
Atkins, a former SEC commissioner, is widely viewed as a crypto-friendly figure. His approach is expected to stand in stark contrast to Gensler's enforcement-heavy period, during which the SEC pursued more than 80 actions against cryptocurrency companies, often claiming that various tokens were unregistered securities.
While Gensler's supporters claim that these measures were necessary to combat fraud and manipulation, critics contend that his approach stifled creativity and created an atmosphere of regulatory uncertainty.
However, the incoming leadership appears ready to adopt a more balanced approach. Atkins is expected to cooperate closely with Republican SEC Commissioners Hester Peirce and Mark Ueda, both of whom have been vocal critics of Gensler's policies.
One of the most important transformations is the transformation of the Securities and Exchange Commission Rumor It plans to freeze or even withdraw enforcement actions that do not involve fraud allegations. If implemented, the move would signal a radical shift from Gensler's tough crackdown, offering the industry a chance to rebuild trust with regulators.
Hence, the risks are particularly high for the future of cryptocurrency ETFs, a sector that could see accelerated approvals under the SEC's new leadership.
With Litecoin, Solana, and XRP ETFs already vying for regulatory approval, the industry is watching closely to see if Atkins will pave the way to a more welcoming environment.
Source link