Under the new leadership, the US Securities and Exchange Commission (SEC) may take into consideration approving spot Litecoin ETFs.
Two ETF experts at Bloomberg Intelligence, Eric Balchunas and James Seyffart, speculate that the regulator may be interacting with the filing of Litecoin (LTE) exchange-traded funds (ETFs).
Seyffart said on X, “Canary Funds just filed an amended S-1 for their Litecoin ETF filing.” “There are no guarantees, but this could be a sign that the SEC is interested in the filing.”
Canary Capital Group, a cryptocurrency investment business, and the Nasdaq filed new documents with the SEC this week. This implies that the regulator must decide whether to accept or disapprove the cryptocurrency items this year.
Balchunas observed, “Litecoin ETF now has all the boxes checked.”There is a possibility that the first altcoin ETF of 2025 “is about to be on the clock,” he continued.
The action suggests that the crypto ETF market may go beyond Bitcoin and Ethereum if it is accepted.
Additionally, the new ETF would store real Litecoin rather than futures contracts, according to the S-1 registration statement. It further stated that BitGo Trust Company and Coinbase Custody Trust Company would act as custodians.
Litecoin Increases by More Than 18% in a Day
The altcoin has performed well over the last day and week, based on data from CoinMarketCap. In just the last day, the token’s trading volume increased by more than 250%.
Excitement about the ETF filings was the cause of the soaring profits. Both institutional and individual investors have made large purchases as a result of the speculation.
Litecoin was up 18% over the previous day, trading at $136 at the time of writing. Furthermore, trade volumes for the cryptocurrency have increased by over 250% to $1.83 billion.
Furthermore, Santiment’s on-chain data shows that big investors, including sharks and whales, have been actively buying Litecoin.
“Whale and shark holdings of at least 10K+ $LTC appear to be the main driver, as we saw in early December.”
Since January 9, these whales have increased their holdings by 250,000 bitcoin, Santiment said.
