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- The SEC invited public comments on the proposed Litecoin ETF within 21 days, bringing the possibility of approval closer to reality.
- Following the SEC’s acknowledgment, Litecoin’s trading volume surged nearly twofold, reaching $1.19 billion, with LTC price surging 13%.
Litecoin (LTC) price surged sharply on Thursday, climbing more than 13% after the U.S. Securities and Exchange Commission (SEC) formally acknowledged Canary Capital’s spot LTC exchange-traded fund (ETF) application. The LTC price emerged as the top performer among those with a market capitalization of more than $1 billion.
SEC Seeks Public Comments On Proposed Spot Litecoin ETF
The SEC decided to approve the ETF filing and included an invitation for public comments. The regulatory body requested that the stakeholders submit their views within 21 days after the proposal appears in the Federal Register.
“The interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act,” the filing stated.
For further context, the application in question was filed by Canary Capital, a digital asset trading firm, and was supported by a 19b-4 filing from Nasdaq. This is an important step in the regulatory process that brings the possibility of a Litecoin ETF one step closer to reality. As reported last week, other asset managers like Grayscale and Coinshares are also in the race seeking approval for a Litecoin ETF.
ETF Analyst: Litecoin Filing Is the Most Advanced Yet
Leading ETF analyst Eric Balchunas weighed in on the development, saying that the Canary Capital application was “by far the furthest along checking all the boxes” since the approval of spot Ethereum ETFs last year. His comments highlight the growing optimism surrounding Litecoin’s chances of becoming the next crypto to have an ETF listed in the U.S.
Following the recognition of the filing by the SEC, Litecoin’s trading volume jumped nearly twofold to $1.19 billion. The price spike placed LTC as the best-performing major cryptocurrency in the past 24 hours.
Moreover, another interesting aspect of the SEC’s acknowledgment was its classification of Litecoin as closely resembling Bitcoin (BTC). The regulator noted that “no single entity owns or operates the Litecoin Network, the infrastructure of which is collectively maintained by a decentralized user base.”
This description aligns with the general perception of LTC as a decentralized asset akin to Bitcoin and reinforces its status as a commodity. Unlike other digital assets facing regulatory challenges in the U.S., Litecoin has largely avoided scrutiny from the SEC.
With anticipation building around the potential approval of Canary Capital’s Litecoin ETF, prediction markets have shown strong confidence in its likelihood. According to Polymarket, the probability of the SEC greenlighting the ETF in 2025 stood at 85% at the time of writing, as mentioned in our previous news article.
LTC Price Performance Today
At the time of writing, Litecoin was trading at $128.36, up 13.38% in the last 24 hours. According to our recent analysis, the rally pushed LTC’s year-to-date gains to nearly 28%, further fueling optimism about its market trajectory.
Moreover, the 24-hour trade volume for LTC rocketed 130.64% to $1.32 billion, indicating heightened investor interest after the SEC’s latest announcement. Litecoin price even touched a high of $130.41 today, hence, analysts remain strongly optimistic on its future trajectory.
