Litecoin (LTC) Price Soars as SEC Engages with Canary Capital Litecoin ETF Application

3 hours ago 5

There is a growing buzz about the next crypto ETF that has a high chance of winning regulatory nod following those linked to Bitcoin and Ether. Among the candidates, Bloomberg ETF analysts see Litecoin as the frontrunner for the next crypto ETF approval.

Canary Capital is the entity that is currently seeking regulatory approval to launch its Litecoin ETF.

On Jan. 15, fund manager Canary Capital submitted an amended S-1 registration form to the U.S. Securities and Exchange Commission (SEC). The move suggests that the SEC has engaged with Canary on its application, according to James Seyffart and Eric Balchunas, two Bloomberg ETF analysts.

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

Another ETF?

Canary Capital is the only entity that targets an ETF that holds Litecoin (LTC), the cryptocurrency launched as an alternative to Bitcoin (BTC). The firm announced its filing on October 15 following its XRP ETF application earlier that month.

In the past few months, the firm has actively pursued approval to offer multiple funds tied to cryptocurrencies. Apart from those mentioned above, Canary also aims for Solana ETF and HBAR ETF.

The proposed Litecoin ETF would allow investors to gain exposure to Litecoin without directly owning the cryptocurrency. Canary has yet to reveal the fund’s ticker in its amendment.

Seyffart noted that while the updated filing could mean the SEC is actively reviewing Canary’s application and has provided feedback, it’s not a guarantee ticket to an approval. There’s still no 19b-4 filing at the time, which typically starts the decision clock.

“We had heard chatter that the Litecoin S-1 had gotten comments back from the SEC,” Balchunas said. “This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved.”

Balchunas, however, pointed out that there’s still uncertainty. The securities agency is likely to welcome Paul Atkins as its new chairman once the Senate confirms. Atkins is portrayed as an advocate for innovation and cryptocurrencies.

Litecoin Surges on ETF Optimism and Market-wide Rally

CoinGecko data shows that LTC soared around 13% following Canary’s move to update its Litecoin ETF filing. The cryptocurrency now trades at around $118, up 16% in the last 24 hours. Over the same period, its trading volumes reached $1.6 billion.

According to blockchain analysis firm Santiment, Litecoin’s 16% market cap increase has defied the general market trend. The recent price surge is tied to Litecoin “whales” and “sharks.” These entities have collectively bought 250,000 LTC since Jan. 9.

The price movement might also be partly affected by the market-wide rally after inflation print released Thursday showed some easing in price pressures.

Data shows that the Consumer Price Index (CPI) rose by 0.4% in December 2024, resulting in an annual inflation rate of 2.9%, which matched economists’ expectations.

The core inflation rate, which excludes food and energy prices, was reported at 3.2%, slightly lower than the expected 3.3%. The core measure increased by 0.2% month-over-month, which also fell short of the anticipated 0.3% increase.

Bitcoin reclaimed $100,000 following the CPI report, though it slightly retracted. Other big-cap cryptocurrencies like Ether, XRP, BNB, SOL, and DOGE also posted gains over the past 24 hours.

XRP has surged past $3 for the first since 2018 as investors highly expect the ongoing lawsuit between Ripple Labs and the SEC will end soon with the new administration.

Solana and XRP ETFs are currently leading in terms of application numbers. It appears that Wall Street giants also keep eyes on these ETFs.

JPMorgan forecasts that Solana ETFs may draw between $3 billion to $6 billion and XRP ETFs could attract between $4 billion to $8 billion within their first year of trading if greenlit by the SEC. These estimates are based on the adoption rates observed in Bitcoin and Ethereum ETFs.