Litecoin (LTC) ETF Approval Odds Surge to 85% as Canary Capital's Spot ETF Gets Listed on DTCC

Approval odds for a Litecoin ETF on the prediction market Polymarket increased sharply to 85%. This rise happened after Canary Capital's spot Litecoin ETF was listed on the Depository Trust and Clearing Corporation (DTCC) system.

CoinChapter – Approval odds for a Litecoin ETF on the prediction market Polymarket have risen sharply to 85%. This surge in approval odds comes after Canary Capital’s spot Litecoin ETF was listed on the Depository Trust and Clearing Corporation (DTCC) system.

The odds jumped by 35% within 24 hours, indicating growing market confidence in the approval of a Litecoin ETF. The United States is working to introduce more cryptocurrency ETFs after the SEC approved the first Ethereum ETF in May 2024.

Canary Capital's Litecoin ETF is now listed on the DTCC system under the ticker symbol LTCC. The Litecoin Foundation confirmed the listing on Twitter, highlighting the importance of the DTCC.

The DTCC plays a pivotal role in global finance, handling trillions of dollars in securities each day. However, the foundation also clarified that this listing does not mean the ETF is approved yet. It only shows that preparations are being made in case approval comes.

“Doesn't mean it's approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds,” ETF analyst Eric Balchunas noted.

The DTCC listing comes after the SEC recently acknowledged Canary Capital's ETF application. The SEC opened the proposal for public comments three weeks ago, indicating that the application met the initial SEC filing requirements.

Canary Capital first applied for a Litecoin ETF in October 2024. It is among several proposals awaiting the SEC's decision. Other asset managers, like Grayscale and CoinShares, have also applied to launch Litecoin-based products.

Recently, Nasdaq also filed 19b-4 forms with the SEC to list and trade two CoinShares ETPs, including a Litecoin ETF. This trend shows that institutional interest in offering cryptocurrency investment options continues to grow.

It's worth noting that Litecoin's classification as a Bitcoin fork and commodity could influence its chances with regulators. This differs from cryptocurrencies like XRP, which face legal challenges from the SEC.

However, despite optimism, SEC approval remains uncertain. The SEC's process is thorough, designed to ensure new financial products are safe and comply with strict rules protecting investors.

Meanwhile, the news of a Litecoin ETF had limited impact on the token's price. According to TradingView data, Litecoin (LTC/USD) was trading at $138.21 at the time of reporting.

The price fluctuated between $137.68 and $140.00, showing a 0.41% increase. Litecoin's trading volume reached 21.61K LTC.