Ex-Valkyrie Founder’s Canary Capital Group Files For First Litecoin (LTC) ETF
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In a major development in the world of cryptocurrency, Canary Capital Group, a leading investment firm founded by the ex-Valkyrie founder, has filed for the first Litecoin (LTC) exchange-traded fund (ETF). This move comes as a significant milestone for the cryptocurrency community, as it marks the first time that Litecoin will be available to investors in an ETF format.
The filing was made with the U.S. Securities and Exchange Commission (SEC) on August 23, 2021, under the name “Canary Capital Group Litecoin Trust.” The ETF is designed to track the performance of Litecoin, the world’s eighth-largest cryptocurrency by market capitalization. If approved by the SEC, the Litecoin ETF would allow investors to gain exposure to Litecoin without having to buy and store the digital currency themselves.
Litecoin, often referred to as the silver to Bitcoin’s gold, was created in 2011 by Charlie Lee, a former Google engineer. The cryptocurrency is known for its fast transaction speeds and low fees, making it a popular choice among users and investors alike. With a current market capitalization of over $11 billion, Litecoin has become a prominent player in the cryptocurrency market.
The filing of the Litecoin ETF by Canary Capital Group is seen as a way to capitalize on the growing interest in cryptocurrencies among traditional investors. ETFs are investment funds that are traded on stock exchanges and hold assets such as stocks, bonds, or commodities. By offering a Litecoin ETF, Canary Capital Group aims to provide investors with a convenient and regulated way to invest in the digital currency.
According to the filing, the Canary Capital Group Litecoin Trust will be backed by physical Litecoin, meaning that the fund will hold the actual cryptocurrency rather than derivative products. This approach is expected to provide investors with more transparency and security, as the fund’s holdings will be directly linked to the price of Litecoin.
The filing also outlines the objectives of the Litecoin ETF, which include providing investors with exposure to the price of Litecoin and allowing them to trade the ETF on traditional stock exchanges. The fund will be available to both institutional and retail investors, making it accessible to a wide range of market participants.
The news of the filing of the Litecoin ETF has been met with excitement and optimism within the cryptocurrency community. Many see it as a validation of Litecoin’s potential and a step towards greater adoption of the digital currency. In a statement, Charlie Lee expressed his support for the ETF, stating that it could help bring Litecoin to a broader audience of investors.
The filing of the Litecoin ETF by Canary Capital Group comes at a time of increased regulatory scrutiny of the cryptocurrency market. The SEC has been reluctant to approve cryptocurrency ETFs in the past, citing concerns about market manipulation and investor protection. However, with the growing acceptance of digital currencies among mainstream investors, there is hope that the approval of the Litecoin ETF could pave the way for more cryptocurrency ETFs in the future.
In response to the filing, Litecoin prices surged by over 10% on the news, reaching a high of $180. The positive price action reflects the market’s enthusiasm for the potential launch of the Litecoin ETF and its potential to attract new investors to the cryptocurrency.
If approved by the SEC, the Canary Capital Group Litecoin Trust could be a game-changer for the cryptocurrency market. It would provide investors with a regulated and convenient way to invest in Litecoin, potentially leading to increased adoption and mainstream acceptance of the digital currency. With the filing of the first Litecoin ETF, the future of cryptocurrency investing looks brighter than ever.
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