Litecoin ETF Set for Approval in U.S. Amid 15% Surge and Investor Interest

• Litecoin ETF has high approval chances following SEC feedback.
• U.S. Bancorp, Coinbase, and BitGo will manage Litecoin ETF.
• LTC sees 15% price spike amid increasing whale activity.

Litecoin’s upcoming ETF could become the next big thing in the U.S. market. With a 15% price rise and positive SEC feedback on Canary Capital’s filing, analysts predict imminent approval. The move could solidify Litecoin’s position in mainstream finance.

Litecoin ETF approval 

A Litecoin exchange-traded fund (ETF) has a high chance of approval in the United States. Bloomberg analyst Eric Balchunas predicted this after Canary Capital amended its S-1 form for the Litecoin ETF. The submission signals the SEC’s potential readiness to approve the product, he noted.

The amended S-1 form filed on January 15 outlines key provisions for the proposed ETF. These provisions include the U.S. Bancorp Fund Services who would serve as the administrator and Coinbase Custody Trust and BitGo who would act as custodians for the fund. Balchunas said that the feedback received from the SEC is a positive sign, suggesting that approval could happen soon.

However, a new SEC chair will soon take office following Gary Gensler’s departure. The nomination of crypto-friendly Paul Atkins by President-elect Donald Trump leaves uncertainty about the future direction of the SEC. Atkin is yet to be confirmed by the Senate.

James Seyffart, another Bloomberg analyst, added that the amendment of the filing could signal ongoing discussions with the SEC. He noted that a 19b-4 filing would serve as a more direct signal of approval. The filing of this application remains a key milestone in the ETF approval process.

LTC Price Action

Litecoin (LTC), which launched in 2011 as a faster alternative to Bitcoin, is currently the 25th largest cryptocurrency. According to The Block’s crypto price data, LTC has a market cap of $8.9 billion. Recently, LTC showed a strong market performance with over 15% increase in just 24 hours.

Market analysts have linked Litecoin’s recent price rise to increased activity by large holders of the coin. Large investors, Whales and sharks, have purchased a combined 250,000 LTC, worth approximately $29 million, since January 9. Analysts believe this surge in buying activity could have contributed to the 15% increase in LTC price.

Crypto ETF Trend

The approval of Litecoin’s ETF would add to the growing list of approved spot crypto ETFs in the U.S. It would follow the success of Bitcoin and Ether ETFs, which have exceeded expectations. The potential success of Litecoin’s ETF reflects the increasing acceptance of digital assets within traditional financial markets.

The proposed ETF would offer investors a regulated way to gain exposure to LTC, further enhancing its appeal. This move aligns with a broader trend of cryptocurrency-based financial products. Solana and XRP have also seen increased interest, with new ETFs for these coins potentially attracting billions in investment.