Canary’s Spot Litecoin ETF Added to DTCC List Ahead of SEC Clearance

Crypto fund manager Canary Capital’s spot Litecoin exchange-traded fund (ETF) has been added to the Depository Trust and Clearing Corporation (DTCC) ETF list. The listing under the ticker LTCC appeared on its official website, late Thursday.

The investment firm filed for the Litecoin ETF in October 2024, at the same time as its proposed XRP ETF.

Canary’s spot Litecoin ETF is still pending regulatory approval from the US Securities and Exchange Commission (SEC). However, the DTCC listing marks a preparatory step towards its potential launch.

“This file includes both active ETFs that may be processed at DTCC and ETFs that are not yet active (pre-launch) and, therefore, are not able to be processed at DTCC, unless and until such securities have received all necessary regulatory and other approvals,” the official website noted.

Nasdaq described the DTCC as a provider of post-trade clearance, settlement, custody and information services.

“[The listing] doesn’t mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is,” wrote Bloomberg chief ETF analyst Eric Balchunas.

He added that there is a 90% possibility that Canary’s Litecoin spot ETF would be approved. If approved, Litecoin would become third, after Bitcoin and Ether, to serve as a base asset for a spot ETF.

Doesnt mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds. $LTCC https://t.co/ugQgsO9fIB

— Eric Balchunas (@EricBalchunas) February 21, 2025

Following the listing, Litecoin has soared 0.3% in the last 24 hours, indicating increased investor optimism on the ETF’s approval. Litecoin is currently trading at $135.02 at press time, according to CoinMarketCap.

Further, the crypto has outperformed with a 46% increase in its marketcap between February 2 and February 19, Santiment reported.

SEC Ready to Advance Litecoin and Other Crypto ETFs

Early this month, the SEC acknowledged several applications for crypto ETFs, including those of Solana, Litecoin and XRP. The move has tied the regulator to a strict deadline for approval or denial.

According to Balchunas, the SEC’s acknowledgement is a “notable” move. The regulator, which previously deemed a crypto as “security,” is mulling to approve a fund tracking the crypto’s price.

“We are now in new territory, albeit just a baby step, but seemingly the direct result of leadership change,” he wrote on X.

Notable bc this is the first time an ETF filing tracking a coin that had prev been called a "security" has been acknowledged by SEC. Only six weeks ago the Genz-led SEC told CBOE to withdrawal their Solana 19b-4. So we are now in new territory, albeit just a baby step, but… https://t.co/XiRyA8g3R7

— Eric Balchunas (@EricBalchunas) February 6, 2025

Notably, Litecoin is compliant with a few regulatory criteria, given that it is already recognized as a commodity by the Commodity Futures Trading Commission (CFTC).