The Securities and Exchange Commission (SEC) has received a proposed rule change from The Nasdaq Stock Market LLC to list and trade shares of the Canary Litecoin ETF. This ETF will be based on Coinbase's Litecoin futures and will operate under Nasdaq's Rule 5711(d) for Commodity-Based Trust Shares. The Trust will use CoinDesk's Litecoin Price Index to calculate the net asset value of the ETF, although it will not utilize a surveillance-sharing agreement with a large regulated market. The SEC is seeking public comments on this proposal before making a decision on approval.
Simple Explanation
Nasdaq wants to let people buy and sell pieces of something called a Canary Litecoin ETF, which is like a special kind of pretend money based on a digital coin called Litecoin. The people in charge want to make sure it’s safe and not a trick, so they are asking everyone to tell them what they think before they decide if it's okay.