Litecoin ETF Approval Imminent as Whales Load Up, Analysts Predict

Litecoin (LTC) exchange-traded fund (ETF) has a high chance of approval in the United States. Bloomberg analyst Eric Balchunas predicted this

A Litecoin exchange-traded fund (ETF) is inching closer to approval in the United States. Following an amendment to Canary Capital’s S-1 form for the Litecoin ETF, Bloomberg analyst Eric Balchunas suggested that the SEC is preparing to approve the product.

The amended S-1 form, filed on January 15, includes key provisions for the proposed ETF. U.S. Bancorp Fund Services will serve as the administrator, while Coinbase Custody Trust and BitGo will act as custodians for the fund. According to Balchunas, the feedback received from the SEC bodes well for the ETF, indicating that approval could be on the horizon.

However, with Gary Gensler’s departure from the SEC and the nomination of crypto-friendly Paul Atkins by President-elect Donald Trump, a new SEC chair is set to take office. This change in leadership introduces uncertainty regarding the future direction of the SEC, as Atkin is yet to be confirmed by the Senate.

Another Bloomberg analyst, James Seyffart, suggested that the amendment might indicate ongoing discussions with the SEC. A 19b-4 filing would more directly signal approval, he noted. Such a filing would mark a significant step in the ETF approval process.

Litecoin (LTC), launched in 2011 as a faster alternative to Bitcoin, currently ranks as the 25th largest cryptocurrency. With a market cap of $8.9 billion (as per The Block’s crypto price data), LTC has shown impressive price movements recently.

According to market analysis, large holders of Litecoin have been notably active in the past few weeks. Whales and sharks, a tier below whales in the crypto food chain, have collectively purchased 250,000 LTC, valued at approximately $29 million, since January 9. This buying activity is believed to have contributed to the over 15% increase in LTC price within 24 hours.

If approved, the Litecoin ETF would join a growing lineup of spot crypto ETFs in the U.S., following the successful launch of Bitcoin and Ether ETFs. This move reflects the increasing acceptance of digital assets within traditional financial markets.

The proposed ETF would provide investors with a regulated avenue to gain exposure to LTC, further bolstering its appeal. This development aligns with a broader trend of cryptocurrency-based financial products, with Solana and XRP also attracting attention. New ETFs for these coins are expected to attract billions in investment.