Litecoin (LTC) ETF Filing Officially Acknowledged by the U.S. SEC, Marking a Potential Milestone in the Expansion of Crypto-Based Exchange-Traded Funds

Under the leadership of Acting Chairman Mark Uyeda, the SEC began reviewing the 19b-4 application submitted by Nasdaq on 29th January.

The U.S. Securities and Exchange Commission (SEC) has officially recognized Canary Capital’s Litecoin (LTC) ETF filing, potentially marking a significant development in the expansion of crypto-based exchange-traded funds.

The SEC, led by Acting Chairman Mark Uyeda, has begun reviewing the 19b-4 application submitted by Nasdaq on 29th January.

Highlighting this development, Bloomberg ETF analyst James Seyffart noted that this filing could pave the way for Litecoin to become the first altcoin outside of Bitcoin (BTC) and Ethereum (ETH) to receive ETF approval in 2025.

If approved, this move could signal broader institutional acceptance of alternative cryptocurrencies in the regulated financial market.

Commenting on the same, Eric Balchunas, senior ETF analyst for Bloomberg, said in an X post,

“First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown.”

notably, the Litecoin ETF filing comes as several firms are pushing for altcoin-based exchange-traded funds, seeking regulatory approval for a diverse range of crypto investment products.

The firm had earlier filed its S-1 registration with the SEC in October, aiming to provide investors with exposure to Litecoin.

This move followed its earlier attempt to launch Ripple’s XRP-based ETF, highlighting a broader industry trend toward diversified crypto ETFs.

According to Bloomberg’s Balchunas, the SEC may use the full 240-day review period or expedite the process, considering the evolving regulatory stance on digital assets.

That being said, as spot BTC ETFs were approved in January 2024 and ETH ETFs in May, firms are now competing to introduce products linked to Solana (SOL), XRP, and even memecoins tied to U.S. political figures.

Other altcoin ETF gaining spotlight

Moreover, as the 2024 election nears, the potential return of a crypto-friendly Trump administration could further shape the regulatory landscape for these emerging financial products.

Under the leadership of Acting SEC Chair Mark Uyeda and crypto-friendly Commissioner Hester Peirce, the regulatory landscape for digital assets is shifting away from the stricter approach of former Chair Gary Gensler.

In fact, the latest entry, Tuttle Capital Management, has filed for a Cardano (ADA) ETF, highlighting the interest in diversifying crypto investment options.

This optimism is further fueled by a Trump administration that could be more favorable to crypto, raising expectations for several pending approvals.

But what’s interesting here is that betting markets like Polymarket show a tangible rise in confidence, with the odds of a Cardano ETF reaching 60%, indicating strong belief in a 2025 launch.

Whereas, LTC ETF stands at 87% probability as per Polymarket.

Adding to the optimism, Balchunas and Seyffart both had earlier suggested that Litecoin and Hedera ETFs could debut ahead of Solana and XRP-based funds, signaling a shift in market expectations.

Thus, with ongoing SEC evaluations and a changing regulatory approach, the coming months could see a new wave of crypto ETFs reshaping the market landscape.