The plan of Canary Capital Group
Canary Capital Group, an investment firm founded by Steven McClurg, submitted the application to the SEC in October 2024, as reported by CriptoNoticias.
Its proposal seeks to offer traditional investors a way to access litecoin without the need to acquire and store the asset directly.
The company has highlighted that its ETF will not use financial derivatives, which would avoid additional counterparty and credit risks.
The DTCC is an entity responsible for the clearing and settlement of financial securities in the country. Although this registration does not represent regulatory approval, it is a prerequisite for the fund to be launched on the market in case it receives the green light from the U.S. Securities and Exchange Commission (SEC).
Inclusion in the DTCC is a standard procedure for funds looking to operate in the U.S. market. In the past, bitcoin (BTC) and ether (ETH) ETFs also went through this process before their official approval.
Approval expectations
The ETF specialist from Bloomberg Intelligence, Eric Balchunas, noted that the inclusion of LTCC in the DTCC does not mean that the fund is approved or ready for immediate marketing.
However, it indicated that this move shows that Canary Capital Group is paving the way for its launch. According to its estimates, the probability that the fund will be approved is 90%. #LitecoinETF
