Litecoin Set for ETF Approval as SEC Reviews Filing

Litecoin Set for ETF Approval as SEC Reviews Filing

Litecoin may soon become the next cryptocurrency to receive a US spot ETF, as the SEC reviews an amended S-1 filing by Canary Funds. The ETF would allow investors to hold Litecoin securely, with custody provided by Coinbase Custody Trust Company.

Bloomberg ETF analysts Eric Balchunas and James Seyffart suggested that the SEC's engagement with the filing indicates a high chance of approval. “We had heard chatter that the Litecoin S-1 had gotten comments back from the SEC,” Balchunas wrote on X.

The amended filing and form submission come days before a leadership change at the SEC, with crypto-friendly Paul Atkins set to replace Gary Gensler as chair. Balchunas noted that Atkins’ appointment could be a “huge variable” in the SEC’s future stance on cryptocurrency ETFs.

Nasdaq also filed a 19b-4 form on behalf of Canary Funds for the proposed Canary Litecoin ETF. For context, Litecoin, a Bitcoin fork using Proof-of-Work consensus, has never been labeled a security by the SEC, unlike other cryptocurrencies such as XRP and Solana.

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Vitalik Buterin Defends Sony's Soneium L2 Amid User Criticism

Ethereum co-founder Vitalik Buterin addressed backlash surrounding Sony’s Ethereum Layer-2 network, Soneium, after it restricted certain meme coin transactions for intellectual property violations. “Businesses can make very fine-grained choices around how much control they keep vs. give to users,” Buterin said on X, which heated up debates over onchain censorship even more.

Built on the OP Stack, Soneium uses a centralized sequencer that allows temporary blacklisting while preserving blockchain accessibility through alternative means. Users discovered a workaround to bypass Soneium’s restrictions by directly processing transactions on Ethereum, though this method incurred a 12-hour delay.

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Crypto-Friendly eToro Files for US IPO at $5 Billion Valuation

Trading platform eToro has filed confidentially for a US IPO on the New York Stock Exchange, seeking a valuation of over $5 billion, the Financial Times reported. The sale, expected in the second quarter, would make eToro one of the few publicly listed companies offering cryptocurrency trading in the United States. Goldman Sachs, Jefferies, and UBS are advising on the IPO.

The move follows eToro’s failed 2021 SPAC merger at a $10.4 billion valuation due to unfavorable market conditions. In 2023, eToro raised $250 million at a $3.5 billion valuation after settling SEC charges for operating as an unregistered broker. If successful, the IPO would position eToro alongside Coinbase and Robinhood as major publicly traded platforms for crypto and equities.

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IRS to Monitor Crypto Transactions on Exchanges in 2025

For the first time, crypto transactions conducted on centralized platforms like Coinbase, and Gemini will be reported to the IRS in 2025, CNN reported. The new reporting requirements mandate brokers to issue 1099-DA forms detailing crypto purchases and sales. According to the U.S. Treasury, the initiative will “reduce inadvertent errors or noncompliance” among taxpayers.

“Brokers include operators of custodial digital asset trading platforms, certain digital asset hosted wallet providers, [and] digital asset kiosks,” the IRS stated on their site last year. The requirement, aimed at improving tax compliance, excludes decentralized platforms until 2027. ETF providers will also issue tax forms, which could reflect taxable events from fund operations.

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Data of the Day

The NFT market in 2024 saw its lowest performance since 2020, with trading volumes falling 19% to $13.7 billion, according to DappRadar’s annual report. Sales counts dropped 18% to 50 million, reflecting increased NFT prices due to rising token values like Ethereum.

DappRadar noted, “Momentum was short-lived,” as trading volumes plummeted from $5.3 billion in Q1 to $1.5 billion in Q3 before rebounding slightly in Q4. Gaming-related NFTs dominated sales, led by Gods Unchained with $152 million in trading volume. Pudgy Penguins claimed the top overall NFT collection by volume, rising 140% year-over-year to $786 million.

More Breaking News

• Coinbase partnered with Morpho to launch Bitcoin-backed loans on its Base network, allowing US users to borrow up to $100,000 (if the BTC is held on Coinbase).
• MicroStrategy plans a $2 billion perpetual preferred stock offering to fund further Bitcoin purchases, with details expected in Q1 2025.
• Pump.fun faces a potential lawsuit over alleged investor harm linked to controversial promotional activities and questionable meme coin practices.
• South Korea’s largest crypto exchange, Upbit, may face sanctions for alleged money laundering compliance failures, potentially restricting new customer activity.
• Pyth Network launched Lazer, an ultra-low-latency oracle for real-time price feeds targeting high-frequency DeFi applications.
• VanEck filed for an Onchain Economy ETF, investing in blockchain firms and infrastructure while avoiding direct cryptocurrency exposure.
• Indian telecom giant Jio partnered with Polygon to integrate Web3 capabilities, enhancing digital services for its 450 million users.
• Solana DEX Jupiter launched an airdrop checker for its $575 million "Jupuary" token airdrop, rewarding active community members.

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