coinspress.com
Canary Capital has recently filed with the SEC for a Litecoin-focused ETF, following up on its earlier application for an XRP ETF this month.
The proposed ETF aims to simplify investing in Litecoin (LTC) by allowing investors to buy shares that mirror LTC’s market value, without the need for managing wallets, private keys, or dealing with exchanges.
The trust behind the ETF will exclusively hold Litecoin, tracking its value after accounting for operational expenses. To protect against security threats, most assets will be stored in cold wallets, keeping private keys offline, while a smaller portion will remain in hot wallets for quick transactions.
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Authorized Participants, typically broker-dealers, will handle the creation and redemption of shares in large batches, using cash transactions with the trust rather than managing Litecoin directly. Their trading activities could affect Litecoin’s price due to arbitrage between the ETF’s share value and LTC’s market price.
Most investors will be able to trade the ETF shares on the secondary market under a specific ticker, gaining exposure to Litecoin’s price changes without holding the asset. The application comes amid heightened interest in crypto ETFs, with Bitcoin ETFs reaching $60 billion in assets under management, and the stablecoin market cap soaring to $170 billion.