Litecoin ETF Approval Looms: SEC Buzz Fuels $119 LTC Price Surge
Litecoin may be the next cryptocurrency ETF in the US. Canary Capital filed an S-1 for a Litecoin ETF in October 2024 and has now filed an amended version with the SEC. Eric Balchunas of Bloomberg thinks this is progress.
The amended filing names U.S. Bancorp Fund Services as the ETF’s administrator and Coinbase Custody Trust and BitGo as custodians for the Litecoin reserves. James Seyffart of Bloomberg ETFs notes that the changes could be SEC engagement and that the agency may have commented on the filing. But no 19b-4 filing means no guarantee of movement.
Balchunas still thinks Litecoin is the front runner for the next crypto ETF approval in the US but notes that leadership changes at the SEC could impact timing.
SEC Leadership Shift and Its Impact on Approval
The timing of the Litecoin ETF approval may depend on the upcoming SEC leadership change. Chair Gary Gensler is leaving and Paul Atkins, a former commissioner with pro-crypto views, has been nominated to take over. Atkins still needs to be confirmed by the Senate so it’s unclear how quickly new policies will take shape.
Balchunas calls the leadership change a “big factor” that could speed up or slow down the Litecoin ETF.
Litecoin Market Surges Amid ETF Optimism
Following news of the amended filing, Litecoin’s price surged by over 18%, reaching $119.46 as of writing. Open interest in LTC futures rose by 29.58% to $575.39 million, and daily trading volume spiked by 277.25% to $1.65 billion, reflecting heightened investor enthusiasm.
Key drivers of the Litecoin rally include:
Historical Stability: Litecoin’s blockchain boasts 100% uptime since its 2011 inception, reinforcing investor confidence.
Bullish Price Predictions: Analysts project Litecoin could surpass $130 soon, with long-term targets around $170.
This momentum builds on the success of recently approved spot Bitcoin and Ethereum ETFs, which have attracted billions in new institutional investments. A report by JPMorgan and HashKey predicts that ETFs for altcoins like Solana and XRP could draw $13.6 billion within a year if approved.
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