A recent tweet from a Bloomberg analyst suggests the possibility that Litecoin ETF could be the next digital asset to be approved by the United States Securities and Exchange Commission (SEC).
According to analyst Eric Balchunas, the SEC has provided comments on the S-1 document related to a potential Litecoin ETF. Such amendments frequently indicate that regulators have provided feedback, and the changes made can provide information about the review’s progress.
We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that’s a huge variable. https://t.co/cKFswPwcr0
— Eric Balchunas (@EricBalchunas) January 15, 2025
If the agency approves Canary’s Litecoin ETF application, the asset will join Bitcoin and Ethereum as the only cryptocurrencies with US-approved spot ETFs.
Major Step Toward Regulatory Engagement.
Last October, Canary Capital, the company behind the ETF application, submitted plans for three different ETFs namely Solana, Litecoin, and XRP. Many in the crypto scene expected Solana or XRP to gain approval first based on them being among the top 10 cryptocurrencies. However, current developments suggest that Litecoin ETF will be the next product approved.
The approval of this product will mark a significant step forward in Litecoin’s institutional recognition. ETFs allow traditional investors to access the crypto market without having to directly purchase and manage digital assets.
Litecoin is one of the earliest layer-1 blockchains with a significant market capitalization and wide global adoption. Its fast network and low transaction fees make it an attractive option for inclusion in traditional financial products like ETFs.
LTC Jumps Over 18%
The latest developments sparked hopes among investors who expects Litecoin to be the next candidate to enter the ETF market. Following the possibility of its ETF approval, the asset saw a notable surge to $120.85, representing an over 19.10% increase in the last 24 hours.
It is important to note that, despite the encouraging news, which represents a significant step toward regulatory engagement, the situation remains uncertain.
The SEC is known for its cautious approach towards cryptocurrencies. However, the incoming administration, who promises to prioritize crypto regulations, might greenlight the product. Until then, the market should remain informed and cautious.
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