Canary Capital Files Registration for Litecoin ETF With SEC
According to the filing, the ETF will not use derivatives but will instead hold LTC directly. The trust will sell and redeem its shares in large blocks, referred to as “baskets.
The Canary Litecoin ETF, sponsored by Canary Capital Group LLC, aims to offer investors exposure to the price of litecoin (LTC), a digital asset created in 2011 by Charlie Lee. The ETF will hold LTC and calculate its net asset value (NAV) daily by referencing the Coindesk Litecoin Price Index. The ETF intends to trade on a national exchange, subject to approval, and is designed for investors who prefer a regulated vehicle over holding LTC directly. Canary Capital plans to provide direct access to the market through this exchange-traded fund, which simplifies the investment process for LTC enthusiasts.
According to the filing, the ETF will not use derivatives but will instead hold LTC directly. The trust will sell and redeem its shares in large blocks, referred to as “baskets.” These baskets will be priced based on the value of the litecoin held by the trust, less any operating expenses and liabilities. This mechanism ensures that shares are closely linked to the underlying value of LTC. The ETF’s structure allows institutional investors and authorized participants to trade in bulk, while individual investors can buy and sell shares on secondary markets, potentially at a premium or discount to the NAV.
The ETF is classified as an emerging growth company under the Jumpstart Our Business Startups Act of 2012, which allows for reduced reporting requirements. While the ETF is not a registered investment company, it operates under specific guidelines set forth by the Securities Act of 1933. Canary Capital has appointed CSC Delaware Trust Company as the trustee and a variety of service providers to manage the fund’s administrative, custodial, and regulatory responsibilities. The news follows Canary Capital’s filing for an XRP ETF last week on Oct. 8.
