The U.S. Securities and Exchange Commission (SEC) has advanced its review of the proposed Canary Litecoin ETF by opening a period for public comments as part of the approval process.
Initial Steps of the Process
After the proposal was published in the Federal Register, the SEC opened a 21-day period for public comments. This move signals that the agency is actively evaluating the product and invites market participants to express their opinions. Nasdaq officially filed Form 19b-4 for Canary’s spot Litecoin ETF on January 16. This filing is a key step where exchanges submit proposals on behalf of ETF issuers. Once approved, the document is published in the Federal Register, initiating the agency’s formal review.
Analyzers' Position
Bloomberg's senior ETF analyst Eric Balchunas highlighted the significance of the application, noting that this is the first altcoin ETF to reach this stage. “When we include the SEC’s comments on the S-1, this filing is by far the furthest along in terms of checking all the boxes,” Balchunas wrote in a post on X (formerly Twitter). However, he questioned whether the SEC would take the full 240-day review period or move forward with a quicker decision.
Current Projects
The Canary Litecoin ETF is one of several crypto-related funds seeking regulatory approval. Other firms have offered leveraged ETFs tied to Solana (SOL), XRP, and even meme coins associated with Donald Trump and Melania Trump, amidst a potentially crypto-friendly Trump administration.
The public comment stage for Canary Litecoin ETF is a critical phase in the approval process, allowing the SEC to gather market opinions and make a thoughtful decision regarding the fund's future.
