Litecoin (LTC) skyrocketed by nearly 12% on Tuesday after the U.S. Securities and Exchange Commission (SEC) announced it would delay its decision on a proposed spot Litecoin ETF. The market responded favorably despite the regulatory uncertainty, pushing LTC’s price to approximately $92.05 and marking a notable 24-hour gain.
Trading Volume Explodes Amid ETF Delay
The SEC’s delay didn’t just fuel Litecoin’s price surge—it also triggered a massive spike in trading volume. According to data from major exchanges, Litecoin’s trading volume surged by over 59% to reach $877 million. The proposal, submitted by Canary Funds, seeks to launch the first U.S.-based spot ETF tied directly to Litecoin’s market price. Instead of an approval or rejection, the SEC has opted to open the floor for public comments, focusing on investor protection against fraud and market manipulation.
SEC Seeks Public Input, Decision Could Extend into 2025
While the SEC’s indecision has left the market in suspense, investor interest in crypto ETFs remains strong. The regulatory body is soliciting public feedback on whether a spot Litecoin ETF can effectively shield investors from fraud risks. Analysts suggest the final decision may not come until 2025, leaving investors to speculate on how the prolonged review will impact LTC’s momentum.
Currently, Litecoin holds the #21 spot in the crypto market rankings with a market cap approaching $7 billion. As the SEC weighs its options, the market will be closely watching for further developments that could potentially influence Litecoin’s trajectory.
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.
Also Read: SEC Delays Litecoin ETF Decision; LTC Drops to $82 as Support Holds
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
