Litecoin (LTC) Price Surges 17% as Polymarket Crypto Bettors Estimate 51% Chance of SEC ETF Approval

The potential for a Litecoin exchange-traded fund (ETF) to gain approval has surged, leading to noticeable price gains for the digital asset.

The US Securities and Exchange Commission (SEC) might approve a Litecoin-focused exchange-traded fund (ETF) in the coming months, according to predictions by crypto bettors on Polymarket.

The decentralized prediction platform currently gives a 51% chance of the SEC approving a Litecoin ETF after Canary Capital amended its S-1 registration form.

Canary Capital’s amended filing has sparked speculation that the SEC is preparing to approve a Litecoin ETF. However, several analysts believe that the approval process is still complex and subject to change.

Here's a summary of the key points discussed in the analysis:

Crypto bettors on Polymarket now estimate a 51% chance of the SEC approving a Litecoin ETF. This prediction surged after Canary Capital amended its S-1 registration form.

Canary Capital’s amended filing is the latest development in the effort to secure SEC approval for a Litecoin ETF. The S-1 form details new securities offerings, including the intended use of funds and an overview of the securities.

While the amendment might indicate progress in discussions between Canary Capital and the SEC, formal approval is still uncertain.

Bloomberg ETF analyst James Seyffart noted that the amendment reflects active engagement with the SEC. However, he emphasized that success is not guaranteed without submitting a 19b-4 filing—a critical step in the approval process.

“Canary Capital amended their S-1 filing to include Litecoin again. This is a step in the ETF approval process, but 19b-4 filings are still needed. Without those, the SEC can continue reviewing an application indefinitely.”

Eric Balchunas, Bloomberg’s Senior ETF analyst, highlighted that this development could place Litecoin ahead of other altcoins in the race for an ETF. He believes the amendment strengthens predictions that Litecoin will be next in line for SEC approval.

“This does put Litecoin ahead of other altcoins in the ETF race. Which is funny because it was ahead of Bitcoin and ether for a long time.”

Should the SEC approve the Litecoin ETF, it would be a major victory for the digital asset and bring it closer to achieving a U.S.-approved spot ETF. Currently, only Bitcoin and ether have spot ETFs approved by the SEC.