The U.S. Securities and Exchange Commission (SEC) is currently seeking public feedback on the Canary Litecoin ETF, indicating a progression in their review process regarding the potential approval of this financial product.
A filing made on January 29, 2025, confirms the SEC has initiated a 21-day period for public comments, which follows the proposal’s listing in the Federal Register.
This development comes after Nasdaq’s submission of a critical 19b-4 filing on January 16, an essential step in the multi-phase approval process for cryptocurrency ETFs. A filed 19b-4 form by exchanges supports the SEC’s examination once it receives acknowledgment and publication.
Nasdaq’s Filing Reaches Key SEC Review Phase
Eric Balchunas, a senior ETF analyst at Bloomberg, pointed out that Nasdaq’s recent filing is a milestone as it is the first altcoin ETF to reach this significant review phase at the SEC. He remarked that, in conjunction with the SEC’s insights on the S-1 filing, this application is currently ahead of any previous initiatives for launching a cryptocurrency ETF beyond Bitcoin and Ethereum.
“The essential question is whether the SEC will use the entire 240-day review window or expedite the process,” Balchunas noted, underscoring the uncertainty surrounding the outcome.
The SEC currently oversees numerous crypto ETF applications, including those concerning Solana (SOL) and XRP, alongside various speculative proposals like leveraged memecoin ETFs connected to Donald Trump and Melania Trump’s brands in light of a prospective crypto-friendly Trump administration.
Under Acting Chair Mark Uyeda, the SEC appears to be shifting from the previously crypto-skeptical approach taken by former Chair Gary Gensler. Uyeda has recently appointed Republican Commissioner Hester Peirce to spearhead a newly established crypto task force, indicating a significant reporting transition.
In January 2024, the SEC granted approval for Bitcoin ETFs, followed by Ethereum ETFs later that same year, generating positive anticipations for wider crypto ETF endorsements.
