Key Takeaways
- Canary Capital amended its S-1 filing, advancing ETF efforts.
- Litecoin's price surged 17%, hitting a four-week high of $120.
- Trading volume rose 240%, reflecting heightened investor interest.
The chances of a Litecoin exchange-traded fund (ETF) gaining U.S. Securities and Exchange Commission (SEC) approval have significantly increased, sparking a surge in the cryptocurrency’s price and trading volume.
Following Canary Capital’s January 15 amendment to its S-1 registration form, market observers see the move as a pivotal step in the race for a Litecoin-focused ETF.
Regulatory requirements
The S-1 filing outlines details of proposed securities and signals active dialogue between Canary Capital and the SEC.
According to Bloomberg ETF analyst James Seyffart, the amendment indicates progress but notes that the process is incomplete without the submission of a 19b-4 filing, a critical document for approval.
Similarly, Eric Balchunas, Bloomberg’s Senior ETF analyst, views this development as positioning Litecoin favorably among altcoins vying for ETF approval.
While acknowledging uncertainties surrounding the incoming SEC chair, Balchunas remarked:
This strengthens predictions that Litecoin could be next for SEC approval.
Price & trading volume surge
The prospect of ETF approval has spurred a bullish response. Litecoin’s price jumped over 17% within 24 hours, reaching a four-week high of $120 before stabilizing at $118.
Trading activity also saw a dramatic increase, with a 240% surge in 24-hour trading volume to $1.7 billion, according to CryptoSlate data.
If approved, Litecoin would join Bitcoin and Ethereum as the only cryptocurrencies with U.S.-approved spot ETFs, solidifying its market position.
