Canary's Litecoin ETF Takes Big Step Toward Nasdaq Listing

Nasdaq took a key step toward listing Canary Capital's spot Litecoin ETF by filing a Form 19b-4 with the Securities and Exchange Commission, starting the regulatory review clock for what could become the next cryptocurrency exchange-traded fund.

The move signals a potential expansion of the cryptocurrency ETF landscape beyond bitcoin and Ethereum , with Litecoin—a digital asset known for faster transaction speeds and lower costs—which is positioned as the next candidate for SEC consideration.

Canary Capital filed an amended S-1 registration statement Wednesday, prompting Bloomberg ETF analyst James Seyffart to note on X that while this suggested SEC engagement, a 19b-4 filing would be needed to start the approval process. Hours later, Nasdaq submitted that critical filing.

"We had heard chatter that the Litecoin S-1 had gotten comments back from SEC," Eric Balchunas, Bloomberg senior ETF analyst, wrote on X . "This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved."

Litecoin Charts Different Path in Crypto Market

While J.P. Morgan analysts project Solana and XRP ETFs could attract between $3 billion to $8 billion in their first year, according to a recent research report , Litecoin offers unique attributes that distinguish it in the market.

Read More: JP Morgan: SEC Crypto Shift May Usher in Solana, XRP ETPs

Created in 2011, Litecoin processes transactions approximately four times faster than bitcoin and with lower fees. The cryptocurrency uses a distinct hashing algorithm that promotes more decentralized mining compared to bitcoin's system.

The proposed ETF would hold actual Litecoin rather than futures contracts, with both Coinbase Custody Trust Company and BitGo Trust Company serving as custodians, according to the S-1 registration statement.

Litecoin rallied over 23% over the past 24 hours, outperforming all cryptocurrencies with market capitalizations over $9 billion during that period, according to CoinMarketCap data .

The timing coincides with broader changes in the regulatory landscape, as current SEC chair Gary Gensler prepares to be replaced by Paul Atkins, who previously served as an SEC commissioner between 2002 and 2008.

Canary’s initial Litecoin ETF S-1 registration statement filing came in October 2024 .