United States of America: Securities and Exchange Commission announced proceedings on Nasdaq's proposal to list Canary Litecoin exchange traded fund (No. SR-NASDAQ-2025-005)

On 5 May 2025, the US Securities and Exchange Commission (SEC) announced proceedings to determine whether to approve or disapprove a proposed rule change by Nasdaq to list and trade shares of the Canary Litecoin (LTC) exchange-traded fund (ETF) under Nasdaq Rule 5711(d), which governs Commodity-Based Trust Shares. The SEC is reviewing Nasdaq’s proposal to list the Canary Litecoin ETF, which would give investors exposure to Litecoin (LTC) by holding the digital asset directly and tracking its price through the CoinDesk Litecoin Index. The ETF’s assets would consist solely of LTC and cash. The SEC is seeking public comment on whether the proposal sufficiently addresses concerns under Section 6(b)(5) of the Securities Exchange Act, specifically on whether it prevents fraud and protects investors.