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A potential Litecoin ETF may soon join the ranks of Bitcoin and Ethereum ETFs in the U.S., with industry experts predicting its approval could be imminent. Bloomberg Senior ETF Analyst Eric Balchunas recently suggested that Litecoin is “most likely” to be the next cryptocurrency ETF approved, following a recent amended filing by Canary Capital with the U.S. Securities and Exchange Commission (SEC).
NEW: @CanaryFunds just filed an amended S-1 for their Litecoin ETF filing. No guarantees — but this might be indicative of SEC engagement on the filing. Still no 19b-4 filing yet though
— James Seyffart (@JSeyff) January 15, 2025
(A 19b-4 would actually start the potential approval/denial clock) h/t @isabelletanlee pic.twitter.com/wFtNOmbmYx
The amended filing, submitted on January 10, 2025, revises an S-1 registration form initially submitted in October 2024. It names U.S. Bancorp Fund Services as the administrator and Coinbase Custody Trust and BitGo as custodians for the Litecoin held in the fund. Industry insiders, including Balchunas, believe this amendment may indicate SEC engagement, possibly following feedback from the regulatory body. However, a formal 19b-4 filing, which would begin the SEC’s approval process, has yet to be made.
The timing of the Litecoin ETF’s approval remains uncertain, especially with the looming leadership change at the SEC. Current SEC Chair Gary Gensler is set to step down, with former Commissioner Paul Atkins, who has shown past support for the cryptocurrency sector, nominated as his successor. While Atkins’ confirmation is pending, this leadership shift adds a layer of unpredictability to the approval timeline.
The excitement surrounding Litecoin’s potential ETF approval is reflected in the coin’s price movements. Following the news of the amended filing, Litecoin’s price surged over 18%, trading at $119.46, and analysts predict it may break the $130 barrier with further price gains toward $170. Additionally, trading volume and open interest for Litecoin have skyrocketed, signaling growing market confidence.
Also Read: Litecoin (LTC) Faces Declining User Demand and Negative Sentiment: Risks of Further Losses
With the success of Bitcoin and Ethereum ETFs already spurring interest in altcoin ETFs like those for Solana and XRP, the Litecoin ETF could draw institutional investments and provide further legitimacy to the cryptocurrency market. As market momentum builds, all eyes are on the next steps in the SEC’s decision-making process.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
