Nasdaq Files for Spot Litecoin ETF

Nasdaq has officially submitted a key filing to gain SEC approval for a spot Litecoin ETF. The 19b-4 form was submitted on behalf of Canary Capital for the proposed Canary Litecoin ETF. This follows an amended S-1 filing by Canary Capital earlier this week, marking a significant step in the regulatory review process.

Litecoin ETF Filing and Regulatory Review

The 19b-4 form, a necessary document for regulatory approval, indicates a proposed rule change to accommodate the ETF. Once the SEC acknowledges this filing and publishes it in the Federal Register, the formal review process begins.

In the filing, U.S. Bancorp Fund Services, LLC is named as the ETF’s administrator, and Coinbase Custody Trust is assigned to manage Litecoin’s custody.

This filing is part of a larger trend, as various firms pursue approval for cryptocurrency spot ETFs. Following the success of Bitcoin and Ethereum ETFs, optimism is growing that Litecoin could be the next cryptocurrency to receive regulatory approval.

Analyst Insights and Approval Prospects

Bloomberg analyst Eric Balchunas expressed optimism about the approval prospects for the Litecoin ETF, citing positive comments tied to the S-1 filing. Balchunas suggested that current discussions indicate a heightened likelihood of approval.

Another Bloomberg analyst, James Seyffart, highlighted that while the 19b-4 filing signals progress, it is not definitive. The next critical step involves an official rule change proposal by a self-regulatory organization like the NYSE. Seyffart emphasized that the process remains in its early stages, and further developments are awaited.

Whale Activity and Market Reaction

Litecoin’s price has surged by 16% amid growing speculation about ETF approval. On-chain data reveals a significant increase in whale activity, with average transaction sizes jumping from $38,100 to $50,700 between January 12 and January 16.

This increase in whale activity suggests that large investors are positioning themselves for potential gains tied to the ETF’s approval.

Broader Crypto ETF Trends

Nasdaq’s filing aligns with a broader push for crypto ETFs, including Solana and XRP-focused products by firms like Bitwise and 21Shares. Speculation about a more crypto-friendly U.S. administration under President-elect Donald Trump has further fueled optimism.

Conclusion

Nasdaq’s Litecoin ETF filing underscores growing institutional interest in cryptocurrency. While regulatory approval is not guaranteed, positive market sentiment and increased investor activity signal confidence in Litecoin’s potential. If approved, the ETF could drive further adoption and solidify Litecoin’s position in the evolving crypto landscape.