Canary Capital Takes a Leap: Spot Litecoin and XRP ETFs on the Horizon

In a significant move, Asset Manager Canary Capital has submitted registration documents for a Spot Litecoin (LTC) stock exchange fund (ETF) to the US supervisory authorities. This development is the latest in a series of proposed ETFs that are paving the way for alternative cryptocurrencies ahead of the US presidential election in November. Canary’s proposed ETF aims to track the performance of the Coindesk Litecoin Price Index (LTX) by holding Spot LTC, according to the submissions.

A Faster, Cheaper Alternative to Bitcoin

Litecoin, often regarded as a faster and more affordable alternative to Bitcoin (BTC) for small payments, is a decentralized digital peer-to-peer currency. Its potential as a more agile and cost-effective option has sparked interest in the crypto community, and Canary’s move is seen as a strategic step towards making it more accessible to investors.

Canary Capital’s XRP ETF Ambitions

In a related development, Canary submitted an S-1 for a proposed spot XRP (XRP) ETF on October 9. This move comes hot on the heels of the issuer’s attempt to register a similar ETF with the Securities and Exchange Commission. The XRP token, introduced by Crypto Payments Protocol Ripple in 2012, has been at the center of a contentious lawsuit filed by the SEC in 2020, which alleged that the token’s launch was an unregistered security offering.

Politics and Cryptocurrency: A Delicate Dance

The submission of the S-1 registration form is just the first step towards launching an LTC ETF, but Canary will have to wait for the SEC to review the documents. The SEC must approve a rule change that allows at least one national securities exchange to list the proposed ETF. As the US presidential election approaches, the crypto policy of candidates is expected to play a significant role in shaping the industry’s future. According to a survey by Gemini, three out of four crypto owners said that a candidate’s crypto policy would influence their vote.

A Shift in Crypto Policy?

Vice President Kamala Harris, who is running for president, is perceived as being more crypto-friendly than her boss, President Joe Biden. In contrast, former President Donald Trump has been a vocal supporter of the industry. Under Biden’s administration, the SEC has taken a more aggressive regulatory stance towards crypto, with over 100 regulatory actions taken against the industry. However, Harris has begun to shift her focus towards blockchain technology, listing it among several emerging sectors where she wants the US to dominate. Galaxy Research suggests that Harris may be aiming for a more constructive approach to crypto regulation, which could have significant implications for the industry.