Canary Capital, an investment firm, plans to introduce a Bitcoin ETF linked to Litecoin prices. The regulatory documents indicate a 0.95% annual fee.
Fee Structure and Prospectus Filing
According to the filing, the Canary Litecoin ETF would charge investors a 0.95% annual expense ratio if approved. The document states: 'The information in this Preliminary Prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This Preliminary Prospectus is not an offer to sell these securities, and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.'
Benchmarking and Structure of the ETF
The Canary Litecoin ETF is designed to let investors track Litecoin’s price while factoring in the fund’s costs and expenses. Its net asset value (NAV) will be calculated daily using the CoinDesk Litecoin CCIXber 60m New York Rate. This benchmark is derived from a 60-minute time-weighted average price of the LTC-USD CCIXber Reference Rate, which aggregates trading data from multiple major platforms.
SEC Timeline and Industry Context
Bloomberg ETF analyst James Seyffart noted that '@CanaryFunds updates the prospectus filing for their Litecoin ETF. Notably its due for final approval decision (or denial?) by the SEC in the first week of October.' If cleared, Canary Capital’s product would join the wave of digital asset ETFs emerging beyond Bitcoin, positioning Litecoin as one of the next cryptocurrencies to enter regulated investment vehicles. The decision, expected in early October, could mark a milestone moment for Litecoin’s integration into mainstream financial markets.
The launch of the Canary Litecoin ETF could have significant implications for the cryptocurrency market, expanding investor opportunities and solidifying Litecoin's position in the financial sector.
