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The process for Litecoin ETF approval is accelerating as Canary Capital’s revised filing with the U.S. Securities and Exchange Commission (SEC) positions Litecoin as a potential frontrunner for the next cryptocurrency ETF approval in the United States. Leadership changes at the SEC and the growing institutional interest in ETFs are shaping the path forward, while the news has already driven a significant price surge for Litecoin.
Revised Filing Points to Progress in Litecoin ETF Approval
Canary Capital recently submitted a revised version of its October 2024 application for a Litecoin ETF to the SEC. According to the updated filing, U.S. Bancorp Fund Services will act as the fund administrator, while Coinbase Custody Trust and BitGo will oversee the custody of Litecoin assets.
While the revised filing is a positive step, it is important to note that the 19b-4 filing—required to formally initiate the SEC’s approval process—has yet to be submitted. Bloomberg’s ETF analyst James Seyffart noted that the SEC might have already provided feedback on the application, signaling progress, though the exact timeline remains uncertain.
SEC Leadership Changes Could Impact Approval Timeline
The ongoing leadership changes within the SEC could have a significant influence on the approval process. Current SEC Chair Gary Gensler is stepping down, and former SEC Commissioner Paul Atkins, known for his pro-crypto stance, has been nominated as his successor. However, Atkins’ Senate confirmation remains pending, leaving the timeline for the leadership transition—and its potential impact on the Litecoin ETF—unclear.
In a social media post, Bloomberg’s Eric Balchunas reaffirmed his earlier prediction that Litecoin could be the next cryptocurrency ETF approved in the United States, citing the revised filing as evidence of SEC’s engagement with the application.
Litecoin Price Reacts to ETF News
Litecoin, one of the oldest and most reliable blockchain projects, has seen a strong market reaction to the ETF news. Following the announcement, LTC’s price surged over 18%, reaching $119.46 at the time of writing. Analysts are optimistic about further gains, with projections suggesting a potential breakout above the $130 resistance level and a near-term target of $170.
Additionally, trading metrics highlight increased market activity. In the past 24 hours, trading volume surged by 277%, while open interest rose 29.58%, reflecting growing investor confidence in Litecoin’s potential.
Spot ETF Trend and Institutional Interest
The recent approval of Bitcoin and Ethereum spot ETFs in the U.S. has fueled increased interest in similar products for other cryptocurrencies. Analysts predict that ETFs for altcoins like Litecoin, Solana, and XRP could attract billions of dollars in new institutional investments. A JPMorgan report suggests that newly approved Solana and XRP ETFs could bring in $13.6 billion in funds within six to twelve months.
A Litecoin ETF could further this trend, driving institutional participation and enhancing market growth. However, the exact timeline for approval remains uncertain as the crypto industry awaits the SEC’s next steps.
Conclusion: A Critical Moment for Litecoin
With its proven reliability and growing institutional interest, Litecoin stands poised to capitalize on the momentum of the ETF trend. As the SEC navigates leadership changes and evaluates revised filings, the cryptocurrency community’s focus is firmly on Litecoin’s potential ETF approval. Turkish NY Radio will continue to provide updates on this developing story, ensuring readers stay informed about these critical market shifts.
