- The SEC acknowledges Canary Capital’s Litecoin ETF, potentially the first altcoin ETF outside BTC & ETH.
- Regulatory shifts under Mark Uyeda boost optimism for broader altcoin ETF approvals in 2025.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Canary Capital’s Litecoin [LTC] ETF filing, marking a potential milestone in the expansion of crypto-based exchange-traded funds.
Under the leadership of Acting Chairman Mark Uyeda, the SEC began reviewing the 19b-4 application submitted by Nasdaq on 29th January.
Execs weighs in
Bloomberg ETF analyst James Seyffart confirmed the development, noting that this filing could pave the way for Litecoin to become the first altcoin outside of Bitcoin [BTC] and Ethereum [ETH] to receive ETF approval in 2025.
If approved, this move could signal broader institutional acceptance of alternative cryptocurrencies in the regulated financial market.
Remarking on the same, Eric Balchunas, senior ETF analyst for Bloomberg, said in an X post,
“First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown.”
Will altcoin ETFs overpower Bitcoin and Ethereum ETFs?
Interestingly, Litecoin ETF filing comes amid a growing push for altcoin-based exchange-traded funds, with firms actively seeking regulatory approval for various crypto investment products.
The firm previously filed its S-1 registration with the SEC in October, signaling its intent to offer investors exposure to Litecoin.
This move followed its earlier attempt to launch Ripple’s XRP-based ETF, highlighting a broader industry trend toward diversified crypto ETFs.
Bloomberg’s Balchunas speculates that the SEC may take the full 240-day review period or expedite the process, given the evolving regulatory stance on digital assets.
That being said, with the approval of spot BTC ETFs in January 2024 and ETH ETFs in May, firms are now competing to introduce products linked to Solana [SOL], XRP, and even niche memecoins tied to U.S. political figures.
Other altcoin ETF gaining spotlight
As the 2024 election approaches, the potential return of a crypto-friendly Trump administration could further shape the regulatory landscape for these emerging financial products.
Under the leadership of Acting SEC Chair Mark Uyeda and crypto-friendly Commissioner Hester Peirce, the regulatory landscape for digital assets is undergoing a shift from the stricter approach of former Chair Gary Gensler.
In fact, the latest entrant, Tuttle Capital Management, has filed for a Cardano [ADA] ETF, reflecting the growing interest in diversifying crypto investment options.
Optimism surrounding a potential SEC overhaul under a Trump administration has further heightened expectations, with many anticipating long-awaited approvals.
Beyond speculation, betting markets like Polymarket show a tangible rise in confidence, with the odds of a Cardano ETF reaching 60%, signaling strong belief in a 2025 launch.
Whereas, LTC ETF stands at 87% probability as per Polymarket.
What’s more?
Adding to the optimism, Balchunas and Seyffart both had earlier suggested that Litecoin and Hedera ETFs could debut ahead of Solana and XRP-based funds, signaling a shift in market expectations.
Thus, with ongoing SEC evaluations and a changing regulatory approach, the coming months could see a new wave of crypto ETFs reshaping the market landscape.
