Canary Capital’s application for a Litecoin exchange-traded fund (ETF) has been officially acknowledged by the U.S. Securities and Exchange Commission (SEC). This is a first for the altcoin market, and it makes Litecoin the first altcoin outside of Bitcoin and Ethereum to receive regulators’ acknowledgment for an ETF application. It is now the market’s assumption that this will lead to much broader institutional adoption of altcoins like Litecoin. By submitting a 19b-4 proposal for the ETF, the Nasdaq has thrust Litecoin into the limelight as a viable competitor in the space of digital asset investments. The ETF application is now open for public comment for a period of 21 days, following which the SEC will weigh the merits of the proposal and the comments received in making its determination of whether to approve the application. The SEC has officially acknowledged Canary Capital’s application for a Litecoin ETF—the first altcoin ETF to get recognition. Public comments are open for 21 days, and Nasdaq’s 19b-4 filing puts $LTC in the spotlight. With Grayscale, CoinShares, Hashdex, and others in the race,… pic.twitter.com/Xo9jrnjbYx — Kyledoops (@kyledoops) January 30, 2025 Will Litecoin Finally Get Its ETF Moment? The Litecoin ETF race is intensifying, with heavy asset managers like Grayscale, CoinShares, and Hashdex leading the charge to offer investment products pegged to LTC. These firms, which have ample experience in managing crypto-based investment funds, see a growing opportunity to satisfy the increased demand from both institutions and retail investors for cryptocurrency investment vehicles that sit comfortably within the regulatory framework. To the increasing optimism among crypto traders, bettors on Polymarket, a decentralized prediction market, are making Litecoin followers even more bullish. They are placing an 87% probability on the SEC approving a Litecoin ETF by 2025. That is a high level of confidence by market participants, and it reflects strong expectations that, if the SEC doesn’t push back, it may soon be “open for business” for regulatory-grade investment vehicles for major digital assets beyond just Bitcoin and Ethereum. Crypto bettors on Polymarket, a decentralized prediction market, have placed an 87% probability on the US Securities and Exchange Commission (SEC) approving a Litecoin ETF this year. https://t.co/a1NC0tFM67 — Litecoin Foundation (@LTCFoundation) January 30, 2025 Litecoin’s Fundamentals Strengthen Amid ETF Speculation The speculation surrounding the ETFs is what is getting people excited, but the on-chain fundamentals of Litecoin are also particularly primed right now for potential price increases. The on-chain fundamentals have never been better, and that’s a result of the increase in network activity. The hashrate—an indicator of security and mining activity, which is like an oil well pumping out crude—has surged 400% since the last Litecoin breakout and is stronger than ever. A higher hashrate means the network is stronger, more secure, and better decentralized. Another force shaping the trajectory of Litecoin is the macroeconomic environment. We are living through a period of very high inflation. We have seen that in a period of decreasing purchasing power for fiat currencies, more and more people are looking to Bitcoin and other cryptocurrencies as a hedge against inflation. This is because, for the most part, these are decentralized assets that have a more or less fixed supply. Litecoin, similarly to these other assets, is facing a hike in demand. #Litecoin (LTC) is on 400% increase in hashrate since the last breakout, Litecoin's network has never been stronger With inflation rates higher than in previous cycles and ETF approvals on the horizon, the fundamentals for Litecoin's price appreciation are… pic.twitter.com/vvDAJ4SlqR — Mike (@CauseWereCrypto) January 30, 2025 A Litecoin ETF’s okay from the SEC could trigger a truly massive price surge. When you look at it from the most basic of basical price-driving angles, you see potential ETF approval and the potential kind of institutional inflow saw when the first Bitcoin ETF launched. And like, when we look at the kind of primed-for-Pump chart Litecoin has been working with since halving to now, the ETF potential, if it happens, could convert that potential Pump into a very real price push. A Defining Moment for Litecoin and the Crypto Industry Canary Capital’s application for a Litecoin ETF has received the first sign of life from regulators this week when the SEC quietly recognized the application. Since robbing the investor class of access to the ETF vehicle, the altcoin market has been on thin ice. From your desktop to your phone, the Canary Capital Litecoin ETF application is on the way. If an ETF were to be approved for Litecoin, it would not only enhance the altcoin’s standing among Bitcoin and Ether in the traditional financial world but also create entirely new, legally above-board, and potentially very profitable venues in which to trade the altcoin. As the SEC’s review progresses, it will be investors and market participants who are most attentive to forthcoming announcements. Should approval come for an ETF to be issued by Grayscale that would hold Litecoin, it might well be seen as a significant step toward not just mainstream acceptance of altcoins but also a realistic prospect of their adoption by the sorts of financial institutions that have, until now, largely stayed away from the cryptocurrency space. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: promesaartstudio/ 123RF // Image Effects by Colorcinch
