Litecoin Goes Legit: Nasdaq Eyes Crypto ETF Trading Debut
Published Date: 2/4/2025
Notice
Summary
Nasdaq wants to start trading shares of the Canary Litecoin ETF, a new fund tied to Litecoin cryptocurrency. This change affects investors looking for easy ways to invest in Litecoin through the stock market. If approved, trading could begin soon, giving people a fresh way to grow their money with crypto without buying coins directly.
Analyzed Economic Effects
6 provisions identified: 3 benefits, 2 costs, 1 mixed.
Buy Litecoin Exposure via Nasdaq ETF
Nasdaq has proposed listing the Canary Litecoin ETF so you can buy shares that seek to track Litecoin (LTC) performance without buying LTC directly. The Shares would trade on Nasdaq as an equity and could begin trading once the Trust's Form S-1 registration is effective and listing conditions are met.
You Cannot Redeem Shares For Litecoin
Authorized participants — not ordinary shareholders — create and redeem ETF Baskets, and those Authorized Participants will deliver or receive only cash when creating or redeeming Shares. Retail shareholders will not be able to redeem Shares for actual LTC.
Cold Storage, Segregation, and Insurance for Custody
Custodians (BitGo Trust and Coinbase Custody) will hold the Trust's LTC in segregated cold storage accounts and carry fidelity insurance; assets are held in accounts identified as Trust property and described as bankruptcy‑remote.
Daily NAV at 4:00 p.m. and 15‑Second IIV
The Trust's net asset value (NAV) will be calculated once daily as of 4:00 p.m. Eastern Time, and an intraday indicative value (IIV) will be disseminated every 15 seconds during the Regular Market Session (9:30 a.m. to 4:00 p.m. ET).
No Forks, Airdrops, or Rewards Passed Through
The Trust will not take into account or pass along incidental rights or assets from forks, airdrops, or any actions that would generate additional LTC or rewards. The Trust will disclaim those incidental rights and will not engage in actions to earn additional LTC.
Trading Hours and Halt Rules Affect Access
The Exchange would allow trading in the Shares from 4:00 a.m. to 8:00 p.m. ET, but trading may be halted under Nasdaq rules (including if the IIV or Index value is not being disseminated or if LTC trading is not occurring).
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Key Dates
Department and Agencies
Related Federal Register Documents
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Nasdaq is updating some details about the service providers and the basket size for the Hashdex Nasdaq Crypto Index US ETF. This change affects investors and fund managers by keeping the ETF’s info accurate and up to date. The update took effect immediately on January 16, 2025, with no big money or timing impacts expected.
Next: 2025-02155, The RBB Fund Trust and First Eagle Investment Management, LLC
The RBB Fund Trust and First Eagle Investment Management want permission to change their subadvisory agreements without asking shareholders every time. They’re also asking to skip some usual fee disclosures about these subadvisers. If approved, this could speed up management changes and reduce paperwork, with a decision expected by late February 2025.