Nasdaq has taken a significant step towards listing and trading a spot Litecoin (LTC) exchange-traded fund (ETF) by filing a 19b-4 Form on Jan. 16. This ETF is registered by Canary Capital, and Bloomberg senior ETF analyst Eric Balchunas believes it to be the first altcoin-related ETF approval in 2025.
According to Balchunas, Canary’s Litecoin ETF has “all the boxes checked” and he sees no reason for it to be withdrawn, especially with the recent engagement from the SEC and the perception of Litecoin as a commodity. This sentiment was echoed by Bloomberg analyst James Seyffart, who noted that while the amendment on the S-1 Form is not a guarantee of approval, it does indicate the SEC’s involvement in the matter.
Following the news of the Nasdaq filing, Seyffart mentioned that it may take a couple of weeks to determine the approval odds as the SEC reviews the Litecoin ETF application. He also pointed out that while recent Solana (SOL) filings were not acknowledged, a Litecoin ETF is more likely to receive regulatory attention due to Litecoin not being considered a security by the SEC.
The price of Litecoin surged by nearly 24% in the past 24 hours, reaching $129.49 at the time of writing. This marks the largest daily gain among the top 25 cryptocurrencies by market cap.
Seyffart and Balchunas predict a wave of ETF approvals in 2025, with mixed ETFs tracking Bitcoin (BTC) and Ethereum (ETH) being the most likely candidates to receive approval. The approval of Hashdex and Franklin Templeton filings in 2024 paved the way for products tied to Litecoin and Hedera (HBAR) to follow suit.
While XRP and SOL ETFs are also in the pipeline, analysts believe they may face delays due to SEC lawsuits regarding their classification as securities. However, there are reports suggesting that President-elect Donald Trump is considering including XRP, SOL, and USD Coin (USDC) in the US National Reserve, which could improve the odds of approval for spot XRP and SOL ETFs.
In conclusion, the cryptocurrency market is poised for a significant shift with the potential approval of altcoin-related ETFs, paving the way for increased mainstream adoption and investment opportunities in the digital asset space.