In a significant shift in its stance on cryptocurrency, the U.S. Securities and Exchange Commission (SEC) has made notable strides toward reshaping its crypto policy. Over the past month, the SEC has brought key filings closer to approval, signaling a major transformation in the country’s crypto landscape.
The latest developments center around two important filings: Grayscale’s Litecoin (LTC) ETF and a request for in-kind redemptions on BlackRock’s Bitcoin ETF. Both are inching toward approval, a sign that the SEC is positioning the U.S. to embrace more innovative cryptocurrency investment products.
JUST IN: Grayscale files for Litecoin $LTC spot ETF.
— Watcher.Guru (@WatcherGuru) January 24, 2025
The acknowledgment of the Grayscale Litecoin ETF filing has sparked excitement, as experts suggest it could be the first ETF centered around Litecoin. Bloomberg analyst Erich Balchunas notes that the Litecoin ETF has now “checked all the boxes,” suggesting that it’s on track for approval. If all goes according to plan, Litecoin could be the foundation for the first ETF launch in 2025, giving institutional investors a new, accessible way to gain exposure to the cryptocurrency.
Litecoin ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don't see any reason why this would be withdrawn either given SEC gave comments on the S-1, litecoin is seen as commodity and there's new SEC sheriff in town. https://t.co/DaE7jxlb9s
— Eric Balchunas (@EricBalchunas) January 16, 2025
Meanwhile, BlackRock’s iShares Bitcoin ETF (IBIT) has also taken a significant step forward. If approved, it would allow for in-kind redemptions, meaning investors could directly transfer Bitcoin rather than convert it into cash. This move could significantly improve liquidity and facilitate easier trading of Bitcoin, which could drive even more momentum in the cryptocurrency market, especially in the wake of Bitcoin’s price surge at the end of 2024.
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The shift in the SEC’s stance coincides with the broader changes in U.S. political leadership. With the election of President Donald Trump, known for his pro-crypto stance, the country’s regulatory approach has evolved, potentially paving the way for a crypto-friendly future. The SEC’s recent acknowledgment of these filings marks an important milestone in the journey toward broader crypto adoption in the U.S.
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 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.
