Litecoin’s native token, LTC, has seen a significant increase in value amidst speculation surrounding the potential approval of a spot Litecoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). The proposal for the ETF was put forth by Canary Capital.
According to data from CryptoSlate, LTC experienced a more than 4% increase in value, reaching $89. This marks the highest price level for Litecoin since March, while many other cryptocurrencies remained relatively stable during the same period. This surge in value has placed LTC among the top two performers within the 25 largest digital assets by market capitalization over the past day, solidifying its position as the 21st-largest crypto by market capitalization.
Market analysts attribute this recent uptick in Litecoin’s value to the anticipation surrounding an upcoming regulatory decision expected to be announced today.
The momentum for a Litecoin ETF has been steadily building, with investor interest in the digital asset growing. Bloomberg ETF analyst James Seyffart recently commented on the looming SEC deadline, suggesting that Litecoin may have a higher likelihood of early approval compared to other altcoin-based ETF proposals.
While the SEC has recently delayed multiple filings involving cryptocurrencies like Solana, XRP, Dogecoin, and Ethereum, there have been no delays or rejections related to Canary’s Litecoin ETF application. Seyffart pointed out that Litecoin appears to be in a favorable position for early approval, although he also noted that a delay is still a possibility given the regulatory landscape.
Canary Capital initially submitted its S-1 registration for the Litecoin ETF in October 2024, followed by a 19b-4 filing by Nasdaq in January 2025 to list the fund for trading. The SEC has already acknowledged these applications, signaling a crucial first step towards potential approval. The final decision deadline for the SEC is set for May 5.
If approved, the Litecoin ETF would provide investors with a means of gaining direct exposure to Litecoin without having to physically hold the token.
As the cryptocurrency market awaits the SEC’s decision, Litecoin continues to attract attention and speculation from investors and analysts alike, with the potential approval of a Litecoin ETF signaling a new chapter for the digital asset.