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.
Step in SEC’s Decision Process
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 exchangefor the investment product, positioning Litecoin as the first altcoin beyondBitcoin 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.
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 recentappointment 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.
This article was written by Jared Kirui at www.financemagnates.com.
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