CoinShares Litecoin ETF moves forward as SEC begins formal review

Key Takeaways

The SEC has started reviewing CoinShares’ application for a Litecoin ETF.
The ETF aims to provide regulated exposure to Litecoin through Nasdaq’s platform.

The SEC began its formal review of CoinShares’ Litecoin ETF application, following Nasdaq’s filing today.

The proposed ETF, structured as a Delaware Statutory Trust, aims to track Litecoin’s performance via the Compass Crypto Reference Index Litecoin – 4pm NY Time, minus fees and expenses.

The trust would exclusively hold Litecoin and cash, with shares representing fractional undivided beneficial interests. Authorized Participants could create and redeem shares in 5,000-block increments.

The SEC’s review period lasts 45 days, extendable to 90 days or more. Regulators will assess market surveillance, investor protections, and compliance measures.

Nasdaq has a surveillance-sharing agreement with Coinbase Derivatives, and the fund will use a qualified custodian for Litecoin storage per SEC standards.

If approved, the ETF would provide regulated Litecoin exposure without direct custody.

The trust’s website will offer daily NAV per share, official closing prices, premium/discount data, historical trends, and the prospectus.

In January, a wave of crypto ETF filings introduced Litecoin, XRP, and Solana funds, with market optimism fueled by potential US leadership changes.

Earlier this month, Bloomberg analysts projected Litecoin as the frontrunner for spot crypto ETF approval, ahead of Solana, XRP, and Dogecoin.