DTCC Lists Canary Capital’s Spot Litecoin ETF

Proposed by Canary Capital in January, the spot Litecoin ETF has appeared in the asset list of the DTCC. This procedure has previously preceded the launch of a product.

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The exchange-traded fund still requires approval from the SEC.

On February 6, the regulator also requested comments regarding the conversion of Grayscale Litecoin Trust into an ETF.

In the case of VanEck’s spot Ethereum ETF, the fund began trading on the CBOE approximately two months after the product appeared on the DTCC list in May 2024.

Following the news, the price of Litecoin rose by 3.4% over the past day, while the market as a whole fell by 0.5%. At the time of writing, the coin is trading at $134.2 with a market capitalization of $10.1 billion. 

XRP ETF

On February 20, the SEC accepted for review an application to convert the Grayscale XRP Trust into an ETF.

Interested parties have 21 days to comment. The regulator is expected to approve, reject, or extend the review period of the document until October 18.

Previously, the agency confirmed the submission of several applications for an XRP ETF from Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares.

Prospects for XRP and LTC

Litecoin could become the third cryptocurrency after Bitcoin and Ethereum to have an ETF in the United States.

According to Bloomberg analyst Eric Balchunas, it is likely that the LTC ETF will become the next fund registered by the Commission.

His colleague James Seyffart also believes that the LTC ETF will be approved before the XRP-based instrument, considering the ambiguous status of Ripple’s asset in the U.S. 

In March 2024, the CFTC declared Litecoin a commodity during a lawsuit against the KuCoin exchange, which triggered an 11% daily increase in the cryptocurrency. This status gives LTC an advantage in terms of potential regulatory resistance.

Previously, SEC’s crypto group head Hester Peirce stated that the structure’s priorities include determining which assets are not securities and creating a clear procedure for registering new tokens.

The SEC is also focused on five applications for a Solana ETF from VanEck, 21Shares, Canary, Bitwise, and Grayscale.

Earlier, Balchunas and Seyffart estimated a 65-90% chance of approval by October for exchange-traded funds based on Litecoin, Dogecoin, Solana, and XRP.