Canary’s amended S-1 has analysts more confident a Litecoin ETF is next

Canary Capital’s recently filed amended S-1 form for its Canary Litecoin exchange-traded fund (ETF) could signal the altcoin may be the next digital asset in the United States to get the crypto ETF treatment, following Bitcoin and Ether in 2024.

According to analysts from Bloomberg, the filing from Canary Capital on Jan. 15 seemingly confirmed industry “chatter” that Litecoin applications are being reviewed by the securities regulator.

“[This] bodes well for our prediction that Litecoin is most likely to be the next coin approved,” Bloomberg ETF analyst Eric Balchunas said on X — though he added that looming leadership change at the Securities and Exchange Commission remains a “huge variable.”

Amended S-1 registration statements like Canary’s filing are often made after the prospective ETF issuer has received feedback from the SEC.

However, Bloomberg ETF analyst James Seffart noted that Canary’s S-1 must be accompanied by a 19b-4 filing to start the potential approval or denial “clock.”

Solana is further ahead on this front, as ETF issuers Bitwise, VanEck, 21Shares and Canary filed 19b-4s for a spot Solana (SOL) ETF in November.

Canary amended provisions in its S-1 form related to its proposed agreements with crypto custodians Coinbase and BitGo in addition to various accounting, marketing, legal and tax matters.

If approved, Litecoin (LTC) would become the third spot crypto ETF approved in the United States after Bitcoin (BTC) and Ether (ETH).

It comes as Litecoin rallied over 15% across Jan. 15-16 — outperforming all cryptocurrencies with a market cap of over $8 billion in that timeframe, CoinGecko data shows.

Blockchain analytics firm Santiment attributed the rise to Litecoin whales and “sharks” scooping up a combined 250,000 Litecoin worth around $29 million since Jan. 9.

The amendment also comes days ahead of the inauguration of US President-elect Donald Trump, who has assembled the most pro-crypto administration to date. 

The SEC’s current chair, Gary Gensler, will be replaced on the same day by Paul Atkins, who previously served as an SEC commissioner between 2002 and 2008 —  and many expect he will provide a friendlier crypto regulatory environment.

Related: BlackRock launches new Bitcoin ETF on Cboe Canada

XRP (XRP) is also in the running to be approved in spot ETF form by the SEC.

Analysts at JPMorgan predicted an SEC-approved spot Solana and XRP ETFs would attract between $3 billion to $6 billion and $4 billion to $8 billion in net assets over the first year.

Balchunas said spot Solana and XRP ETFs raking up a combined $14 billion in that time was a fairly “reasonable guess.”

Magazine: How crypto laws are changing across the world in 2025