Canary Capital has filed an official request with the SEC.

A Litecoin exchange-traded fund (ETF) has a strong chance of becoming the next spot crypto ETF approved in the U.S., according to Eric Balchunas, a senior ETF analyst at Bloomberg. He shared his analysis on X (formerly Twitter) after Canary Capital submitted an amended S-1 filing for its proposed Litecoin ETF last week.

The S-1 filing, a registration form required by the Securities and Exchange Commission (SEC) for new securities, suggests progress in the regulatory review process. “We heard chatter that the Litecoin S-1 received comments back from the SEC,” Balchunas wrote, adding this aligns with his prediction that Litecoin is likely the next cryptocurrency to receive ETF approval.

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“We had heard chatter that the Litecoin S-1 had gotten comments back from [the] SEC,” Balchunas wrote in his X post, predicting that “Litecoin is most likely to be the next coin approved.”

His prediction stands strong chances to materialize as President Donald Trump’s former SEC commissioner Paul Atkins, known for his crypto-friendly stance, will succeed Gary Gensler – an outspoken enemy of crypto as chair of the agency.

It is not clear though when the Senate will confirm Atkins in this role.

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Another Bloomberg analyst, James Seyffart, also suggests that Canary’s amended S-1 filing signals engagement from the SEC. He noted that the next key step would be a 19b-4 filing - an application by a self-regulatory organization, such as the New York Stock Exchange, for a proposed rule change.

Canary Capital initially filed its S-1 for the Litecoin ETF in October 2023. In its amended filing, the firm revealed that U.S. Bancorp Fund Services would serve as the ETF’s administrator, with Coinbase Custody Trust and BitGo acting as custodians to hold Litecoin on behalf of the fund.

As of 21 January, Litecoin traded for $120.87.

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