Litecoin May Be the Next Crypto the SEC Approves for an ETF
The cryptocurrency community is closely monitoring developments in the crypto ETF sector as the U.S. Securities and Exchange Commission (SEC) weighs the approval of a Litecoin (LTC) ETF.
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There is reason to believe that Litecoin could become the next cryptocurrency to receive regulatory approval. On January 15, Canary Capitalâs filing to launch a Litecoin ETF received feedback from the SEC, leading the firm to submit amendments to its S-1 registration statement.
Bloomberg ETF analysts Eric Balchunas and James Seyffart commented on this news, suggesting a high likelihood that the fund will be approved.
If approved, the Canary Litecoin ETF (Trust) will join Bitcoin and Ethereum ETFs in trading.
Following the news, Litecoinâs price surged by 18% in a single day. At the time of writing, LTC is trading at around $120, with a market cap of over $9 billion, making it the 20th largest cryptocurrency by market capitalization.
Litecoin, one of the earliest cryptocurrencies, was launched in 2011 as a Bitcoin fork. It leverages the Lightning Network for faster transactions and lower fees and is accepted by a variety of online merchants.
While Canaryâs Litecoin ETF appears to have a strong chance of approval, it is not guaranteed.
Regardless, with Donald Trump returning to the presidency, more altcoin ETFs are expected to enter the market in 2025.
Asset management firms including 21Shares, Bitwise, and WisdomTree have already filed with the SEC to launch ETFs for XRP, SOL, Hedera, and other altcoins.
The growing interest in crypto investment products highlights a broader trend of increasing adoption. Regulatory developments, such as ETF approvals, are viewed as big steps toward mainstream acceptance, bridging the gap between traditional finance and the digital economy.
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