Key Takeaways:

Canary Capital has filed for a spot Litecoin ETF, tracking the CoinDesk Litecoin Price Index (LTX), marking its second crypto ETF filing after submitting an XRP ETF proposal earlier in October.
The filings come as political and regulatory uncertainty around crypto intensifies ahead of the November U.S. presidential election, with potential shifts depending on the election outcome.
The regulatory environment remains fluid, with the SEC needing to review and approve the Litecoin ETF application.

Canary Capital has filed for a spot Litecoin (LTC) exchange-traded fund (ETF) with U.S. regulators, marking another move toward alternative cryptocurrency ETFs.

The proposed fund will track the performance of Litecoin based on the CoinDesk Litecoin Price Index, highlighting Litecoin’s advantages in speed and cost over Bitcoin for smaller transactions.

Canary Capital has filed the first Form S-1 for a LTC ETF with the U.S. Securities and Exchange Commission (SEC). If approved, the ETF will provide both consumer and institutional investors with wide-spread direct exposure to #Litecoin ‘ $LTC ’ ⚡️https://t.co/ob3heK7dFS pic.twitter.com/IfjcdCPle6
— Litecoin Foundation ⚡️ (@LTCFoundation) October 15, 2024

This filing follows Canary Capital’s submission for a spot XRP ETF just days earlier, adding to a growing list of ETF proposals, including one from crypto fund issuer Bitwise.

Nate Geraci, president of The ETF Store, remarked that the surge in filings might be influenced by the upcoming U.S. presidential election in November.

The regulatory environment remains uncertain, with Vice President Kamala Harris taking a more open approach to crypto than President Joe Biden, whose administration has been aggressive toward the industry.

However, Harris is still seen as less favorable than former President Trump.

Approval of the Litecoin ETF depends on the U.S. Securities and Exchange Commission (SEC), which must review the application and approve relevant rule changes.