Litecoin Surges 15% as ETF Hopes Rise Following SEC Filing Update

Crypto investors eye possibility of Litecoin ETF approval following recent Bitcoin and Ethereum ETF developments

  • Litecoin reaches $118, marking a four-week high with a 15.1% daily increase.
  • Canary Capital’s amended S-1 filing suggests active SEC engagement on Litecoin ETF proposal.
  • Large holders accumulated 250,000 LTC ($29 million) since January 9.
  • Litecoin trades 72% below its all-time high of $410 from May 2021.
  • Competition intensifies as Solana and other altcoins pursue ETF approval.

Litecoin’s price surged 15.1% to $118, reaching a four-week peak as investors respond to potential regulatory advancement for a Litecoin-based exchange-traded fund (ETF). The rally comes amid renewed Optimism following Canary Capital’s recent regulatory filing amendments.

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Regulatory Progress and Market Response

On January 15, Canary Capital submitted amendments to its S-1 registration form with the Securities and Exchange Commission (SEC). The updated filing primarily addresses custodial arrangements with Coinbase and BitGo, aligning with regulatory standards. According to CoinGecko data, Litecoin traded at $117 at publication time.

Bloomberg ETF analyst Eric Balchunas indicated that SEC feedback on the Litecoin S-1 filing suggests positive momentum. However, his colleague James Seyffart emphasized that a 19b-4 submission remains necessary for formal consideration.

Market Activity and Institutional Interest

Analytics firm Santiment reported substantial accumulation by large-scale investors, with institutional players acquiring approximately 250,000 LTC valued at $29 million since January 9. Despite the recent price increase, Litecoin remains significantly below its May 2021 record of $410.

Competitive ETF Landscape

Several investment firms have positioned themselves in the crypto ETF race. Bitwise and VanEck have already submitted 19b-4 forms for Solana ETFs, establishing an early procedural advantage. JPMorgan analysts project substantial first-year inflows for approved crypto ETFs, estimating $14 billion for combined Solana and XRP products.

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The anticipated appointment of Paul Atkins as SEC chairman, replacing Gary Gensler, could influence the regulatory outlook for cryptocurrency ETFs. Atkins’ previous crypto-supportive positions have generated optimism within the digital asset community regarding future ETF approvals.

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