Eric Balchunas, Bloomberg ETF analyst and Top voice in the finance space pointed out that Litecoin is the crypto asset most likely to receive exchange-traded funds following a recent development around the asset.
Eric was reacting to an X post by James Seyyfart which revealed that Canary Funds have filed an amended S-1 for their Litecoin ETF filing.
James Seyyfart is a Bloomberg colleague who oversees Crypto and Asset management and has been on top of the Litecoin ETF situation with Canary Funds.
Eric believes the crypto industry is more likely to see a Litecoin ETF next before any other crypto asset. Speculations in the crypto community have placed XRP and Solana as the most likely assets to get an ETF launched in 2025.
This makes sense because both assets are the next in line behind Bitcoin and Ethereum.
However, Eric believes Litecoin has a bigger shot given the information on the ground and the development with Canary Funds.
The SEC Factor
Eric Balchunas believes Litecoin has a good shot due to the response of the SEC to the S-1 filled by Canary funds for a Litecoin ETF. The SEC has responded to the filing although the comments were not revealed.
“ We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved.” Eric explained.
Eric however hinted at a major obstacle to the development which is the ongoing transition at the SEC. Gary Gensler the outgoing SEC Chief is expected to step down for Paul Atkins from January 20.
The New SEC would need some time to settle down which may disrupt the flow of Canary funds S-1 Application for a Litecoin ETF.
The S-1 file is only the first major step in the process of an ETF application. The 19b-4 file has yet to be filled at the time of the report.
What is an S-1 File?
An S-1 file refers to a Form S-1, a registration document that companies file with the U.S. Securities and Exchange Commission (SEC) when they plan to go public through an Initial Public Offering (IPO).
This form is a legal requirement under the Securities Act of 1933 to ensure that potential investors have adequate information about the company.
An S1 file involves a Company Overview, Financial Statements, Risk Factors, and company Ownership.
This information helps to inform potential investors about the company in question aiding them with ample information before they make their investment.
The SEC approved both Bitcoin and Ethereum’s S-1 and 19b-4 files to complete the process of their exchange-traded funds launch.
