Ex-Valkyrie Founder’s Canary Capital Group Files for First Litecoin ETF

As an experienced crypto investor with a keen eye for potential market leaders, I find the recent move by Canary Capital Group to launch a Litecoin-tracking ETF quite intriguing. Having witnessed the rise and fall of numerous digital asset-focused firms over the years, it’s refreshing to see new players like Canary making bold moves to carve out their niche in this rapidly evolving market.

It appears that Canary Capital Group, a recently established investment company centered around digital assets, spearheaded by ex-co-founder of Valkyrie Funds Steven McClurg, aspires to take the lead in the global crypto Exchange-Traded Fund (ETF) landscape, rather than simply following existing trends.

The firm on Tuesday submitted paperwork to launch the Canary Litecoin (LTC) ETF.

In simple terms, Litecoin’s token serves as its native cryptocurrency. Litecoin is an open-source blockchain initiative that borrowed its underlying code from Bitcoin. Despite numerous exchange-traded funds (ETFs) based on non-native cryptos being launched this year, this is the initial application for a fund specifically linked to LTC.

For Canary, still just over a month in existence, this signifies the second Exchange-Traded Fund (ETF) they are planning to introduce, following their submission of documentation for an ETF based on XRP to the Securities and Exchange Commission (SEC) last week.

Both filings have yet to disclose the management fee or ticker for the potential fund.

On Tuesday, the company filed an S-1 form, which is essential for businesses intending to offer a fresh security and get listed on a public stock market. This document represents one of the necessary submissions required to initiate a tradeable product on an exchange.

As a researcher, I find that submitting the initial filing for a new fund is crucial, but it holds no significance if not accompanied by the subsequent 19b-4 filing. The latter serves as an indicator of a regulatory change at the stock exchange where the fund will eventually be traded.

In the case of the latter, the SEC is obligated to adhere to a specific deadline for making a decision on the application, but there’s no mandate for them to provide a response to the S-1 filing.

LTC jumped 5% higher on the news of the filing, trading at $66.46 as of price time.