Canary Capital’s Proposed Litecoin ETF Listed on DTCC Website: What it Means

The proposed Litecoin ETF from Canary Capital now appears on the DTCC’s “active and pre-launch” ETF list with the ticker LTCC.

Exchange-traded funds have long been a focal point of crypto market interest over the years as market participants eye a boost to their preferred assets from capital inflows from traditional investors. The dominance of this narrative has only gotten stronger with the approval of spot Bitcoin and Ethereum products in 2024.

Over the past month, analysts have suggested that Litecoin is the next asset likely to receive this traditional investment wrapper. As market participants anticipate the Securities and Exchange Commission’s move, one proposed Litecoin ETF has now secured listing on the Deposit Trust & Clearing Corporation. Here’s what it means.

Just Standard Procedure 

Over the past 24 hours, crypto market participants have observed that Canary Capital’s Litecoin ETF has appeared on the DTCC website. The DTCC is a financial services firm that offers post-trade services in financial markets, such as clearing and settlement. In the context of ETFs, it facilitates the creation and redemption of shares.

As many have observed, Canary Capital’s proposed Litecoin ETF now appears on the DTCC’s “active and pre-launch” ETF list with the ticker LTCC.  

But appearance on this list is in no way indicative of the likelihood of approval.

“Doesnt [sic] mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds,” Bloomberg Senior ETF Analyst Eric Balchunas wrote on Friday, February 21, highlighting that the estimated odds of approval of the Litecoin ETF, though high, remain unchanged.

ETF Store President Nate Geraci shared Balchunas’ sentiments, asserting that the DTCC listing had no implications on the chances of approval. Still, he also shared the view that he potential approval was likely, nonetheless.

Indeed, the DTCC website notes that listed products were still subject to regulatory approval and could only be processed after that. For example, BlackRock’s Bitcoin ETF product IBIT first appeared on the DTCC website as early as August 2023, but it was not until January 2024 that it received the SEC’s approval.

SEC Seeking Comments

The recent appearance of Canary’s proposed Litecoin ETF on the DTCC website comes on the heels of the SEC opening its portal for public comments on the filing.

This portal is set to close on Tuesday, February 25, 21 days after the ETF filing and the publishing of the 19b-4 from Nasdaq on the Federal Register. For context, the Canary Litecoin ETF appeared on the register on February 4.

The SEC has 45 days from this date to decide to approve or deny the ETF application. It can also extend this deadline for another 45 days for a total of 90.

Meanwhile, Canary Capital is not the only issuer in the running to launch a Litecoin ETF. The SEC is also considering a similar application from CoinShares. 

In response to the recent ETF speculations, traders are paying increased attention to Litecoin. As highlighted by crypto analytics firm Santiment Feed on Thursday, February 20, Litecoin’s market cap has already grown 46% this month. At the same time, daily transaction volumes are up over 240% from August 2024, when it averaged about $2.8 billion, to about $9.6 billion in the past seven days.

At the time of writing, Litecoin is trading around the $134 mark, representing a 3.6% gain over the past 24 hours.