Nasdaq Files 19b-4 Form for Canary Litecoin ETF, Advancing Crypto Investment Options
Nasdaq has taken a significant step towards expanding cryptocurrency investment opportunities by filing a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) for the Canary Litecoin ETF. This filing marks an essential phase in the approval process for a spot Litecoin exchange-traded fund (ETF), potentially offering investors a new avenue to gain exposure to Litecoin through traditional financial markets.
The 19b-4 filing, submitted on behalf of Canary Capital, outlines the administration and custody arrangements for the proposed Canary Litecoin ETF. U.S. Bancorp Fund Services, LLC will serve as the fund administrator, while U.S. Bank N.A. will handle the custody of the ETF’s cash. Additionally, Coinbase Custody Trust Company LLC is designated to custody the ETF’s Litecoin holdings, ensuring secure management of the cryptocurrency assets.
This submission follows Canary Capital’s amended S-1 form filed earlier on Wednesday, completing the two-step process required for SEC approval. Once the SEC acknowledges the 19b-4 filing and it is published in the Federal Register, the agency’s formal review and approval timeline will commence.
The move comes amidst a competitive landscape where multiple firms are seeking approval for various crypto spot ETFs, including those based on Solana and XRP. The current administration, perceived as crypto-friendly under President-elect Donald Trump, may influence the SEC’s stance on these applications. Notably, the SEC approved Bitcoin ETFs in January 2024 and Ethereum ETFs later that year, signaling a growing acceptance of cryptocurrency-based investment products.
Eric Balchunas, a Senior ETF Analyst at Bloomberg, expressed optimism about the Canary Litecoin ETF’s prospects. In a recent post on X (formerly Twitter), Balchunas mentioned, “We had heard chatter that the Litecoin S-1 had gotten comments back from the SEC,” suggesting that Litecoin is poised to be the next cryptocurrency to receive ETF approval in the U.S. He also highlighted the potential impact of the new SEC chair, Paul Atkins, a former crypto-friendly SEC commissioner selected by President-elect Trump, whose nomination hearing is expected in the coming weeks.
Canary Capital initially filed its Litecoin ETF S-1 statement with the SEC in October 2024, indicating a strategic effort to navigate the regulatory landscape and secure a place in the expanding crypto investment market. If approved, the Canary Litecoin ETF would provide investors with a regulated and accessible means to invest in Litecoin, potentially increasing its adoption and market presence.
As the SEC review process unfolds, stakeholders within the cryptocurrency and traditional finance sectors are closely monitoring developments. The approval of additional crypto ETFs could further integrate digital assets into mainstream investment portfolios, offering greater flexibility and diversity for investors worldwide.