Litecoin (LTC), a cryptocurrency created based on the Bitcoin protocol, recorded substantial gains in anticipation of the approval of an exchange-traded fund based on the cryptocurrency gains momentum.
According to CoinMarketCap price data, LTC soared nearly 19% in the past day. Currently, the US Securities and Exchange Commission (SEC) is evaluating the Canary Litecoin ETF and inviting public
comments.
As the first altcoin ETF to reach this stage, the
market expects it to set a precedent for future cryptocurrency investment
products beyond Bitcoin and Ethereum . This development has fueled optimism in
the crypto market, with Litecoin prices surging in response.
According to a filing dated January 29, 2025, the SEC
has initiated a 21-day public comment period following the ETF proposal’s
publication in the Federal Register. This step followed Nasdaq’s submission of a 19b-4
filing on January 16, a necessary requirement in the approval process for
exchange-traded products.
First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown. https://t.co/iXwq9PkLGr
— Eric Balchunas (@EricBalchunas) January 29, 2025
Canary Capital’s Litecoin ETF is part of a broader
push to introduce alternative cryptocurrency ETFs into the US market. Just a week before this filing, Canary also applied
for an XRP-based ETF, demonstrating increased interest in expanding
institutional crypto investment options. Nasdaq’s involvement further
strengthens the case for Litecoin’s ETF approval.
If granted, Nasdaq will act as the listing exchange
for the investment product, positioning Litecoin as the first altcoin beyond
Bitcoin and Ethereum to gain regulatory recognition in the ETF space.
Following the SEC’s acknowledgment of the ETF
application, Litecoin’s price has experienced an upward momentum. According to
CoinMarketCap data, LTC soared 18% and 17% in the past day and week,
respectively, to trade at $133.The technical price indicators also show that
the digital asset has more prospects for upside.
Positive Market Sentiment
According to TradingView data, the price has been consolidating above $108 since December 1. It is now approaching the
$135 price resistance level, which has been tested twice since December 8.
Litecoin (LTC) Price, Source: CoinMarkerCap
LTC’s price is currently above the 50 and 200 moving averages, and the Relative Strength Index is currently 61. The SEC’s engagement
with the Litecoin ETF comes at a time when regulatory attitudes toward
cryptocurrencies appear to be shifting. Under the leadership of Acting Chair Mark Uyeda, the
agency has shown a willingness to explore a broader range of crypto investment
products.
A key move in this direction was the recent
appointment of Republican Commissioner Hester Peirce to lead a newly
established crypto task force. Peirce, known for her pro-crypto stance, has
been vocal about the need for regulatory clarity.
The SEC previously approved spot Bitcoin ETFs in
January 2024, followed by Ethereum ETFs later that year. These approvals set a
foundation for Litecoin’s current bid to enter the ETF market. The SEC has the
option to use the full 240-day review period before announcing a final ruling.
Litecoin (LTC), a cryptocurrency created based on the Bitcoin protocol, recorded substantial gains in anticipation of the approval of an exchange-traded fund based on the cryptocurrency gains momentum.
According to CoinMarketCap price data, LTC soared nearly 19% in the past day. Currently, the US Securities and Exchange Commission (SEC) is evaluating the Canary Litecoin ETF and inviting public
comments.
As the first altcoin ETF to reach this stage, the
market expects it to set a precedent for future cryptocurrency investment
products beyond Bitcoin and Ethereum . This development has fueled optimism in
the crypto market, with Litecoin prices surging in response.
According to a filing dated January 29, 2025, the SEC
has initiated a 21-day public comment period following the ETF proposal’s
publication in the Federal Register. This step followed Nasdaq’s submission of a 19b-4
filing on January 16, a necessary requirement in the approval process for
exchange-traded products.
First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown. https://t.co/iXwq9PkLGr
— Eric Balchunas (@EricBalchunas) January 29, 2025
Canary Capital’s Litecoin ETF is part of a broader
push to introduce alternative cryptocurrency ETFs into the US market. Just a week before this filing, Canary also applied
for an XRP-based ETF, demonstrating increased interest in expanding
institutional crypto investment options. Nasdaq’s involvement further
strengthens the case for Litecoin’s ETF approval.
If granted, Nasdaq will act as the listing exchange
for the investment product, positioning Litecoin as the first altcoin beyond
Bitcoin and Ethereum to gain regulatory recognition in the ETF space.
Following the SEC’s acknowledgment of the ETF
application, Litecoin’s price has experienced an upward momentum. According to
CoinMarketCap data, LTC soared 18% and 17% in the past day and week,
respectively, to trade at $133.The technical price indicators also show that
the digital asset has more prospects for upside.
Positive Market Sentiment
According to TradingView data, the price has been consolidating above $108 since December 1. It is now approaching the
$135 price resistance level, which has been tested twice since December 8.
Litecoin (LTC) Price, Source: CoinMarkerCap
LTC’s price is currently above the 50 and 200 moving averages, and the Relative Strength Index is currently 61. The SEC’s engagement
with the Litecoin ETF comes at a time when regulatory attitudes toward
cryptocurrencies appear to be shifting. Under the leadership of Acting Chair Mark Uyeda, the
agency has shown a willingness to explore a broader range of crypto investment
products.
A key move in this direction was the recent
appointment of Republican Commissioner Hester Peirce to lead a newly
established crypto task force. Peirce, known for her pro-crypto stance, has
been vocal about the need for regulatory clarity.
The SEC previously approved spot Bitcoin ETFs in
January 2024, followed by Ethereum ETFs later that year. These approvals set a
foundation for Litecoin’s current bid to enter the ETF market. The SEC has the
option to use the full 240-day review period before announcing a final ruling.
