Bitcoin News Today: Litecoin ETF Could Unlock $3B Inflows as SEC Review Enters Crucial Phase

Litecoin (LTC) surged over 10% on October 8, 2025, defying broader cryptocurrency market corrections that saw Bitcoin and Ethereum decline. The altcoin's price climbed to $130.27, its highest level in nearly eight months, driven by heightened speculation around the imminent approval of a spot ETF. Trading volume spiked 143% to $1.66 billion, with open interest in LTC futures rising 25% to $1.21 billion, signaling growing institutional and retail interest.

The ETF race has intensified as three major asset managers-Canary Capital, Grayscale, and CoinShares-compete to launch the first U.S.-listed Litecoin ETF. Canary Capital, the first to file in October 2024, has advanced to the public comment phase of the SEC's 240-day review process. Its proposed ticker, LTCC, has been listed on DTCC systems, and the firm has submitted multiple amended S-1 filings based on SEC feedback. Grayscale, which already manages a $127.4 million Litecoin Trust (LTCN), seeks to convert its existing product into a spot ETF, leveraging its established infrastructure and institutional relationships. CoinShares, meanwhile, brings experience from its Litecoin ETPs in Europe, with $11.5 million in assets under management.

Regulatory progress has accelerated under SEC Acting Chairman Mark Uyeda, who replaced Gary Gensler in January 2025. Unlike previous leadership, the agency has provided substantive feedback on ETF filings rather than rejecting applications outright. Analysts note that Litecoin's CFTC-commodity classification and lack of pre-mine or securities-like features strengthen its approval prospects compared to other altcoins. However, the U.S. government shutdown has delayed final approvals, with the SEC missing its October 1 deadline for Canary's Litecoin ETF. Updated filings were submitted on October 7, 2025, positioning the product for approval once the agency resumes operations.

The potential approval of a Litecoin ETF could catalyze significant capital inflows. Historical data from Bitcoin and Ethereum ETFs show that such products attracted over $12 billion and $8 billion in net inflows during their first year, respectively. Analysts estimate Litecoin could capture $500 million to $3 billion in institutional capital, depending on market conditions and ETF fee structures. Canary's proposed 0.95% fee is higher than Bitcoin ETFs but aligns with costs for emerging crypto assets requiring complex custody solutions.

Price action and technical indicators suggest Litecoin remains in a bullish phase. The asset has broken out from a descending resistance trend line and is trading above key support levels, including the 50-day and 100-day exponential moving averages. While the RSI and MACD show neutral to slightly bearish momentum, analysts argue that a close above $120 could confirm a sustained upward trend. Whale accumulation data also indicates growing institutional interest, with large holders increasing LTC purchases in July 2025.

The broader cryptocurrency market is closely watching the SEC's decision, as Litecoin's ETF approval could set a precedent for other altcoins. If successful, it would mark the third major crypto ETF after Bitcoin and Ethereum, potentially opening the door for Solana, XRP, and Dogecoin ETFs. This could transform institutional access to digital assets, normalizing cryptocurrency allocations in traditional portfolios and accelerating mainstream adoption.

[1] Litecoin ETF Explained: SEC Approval Timeline and ... (https://levex.com/en/blog/litecoin-etf-approval)

[2] Litecoin ETF Tracker and Approval Status | The Block (https://www.theblock.co/litecoin-etf-live-chart)

[3] Litecoin Surges 10% Bucking Bitcoin, Ethereum Drop: Awaits Spot ... (https://www.benzinga.com/crypto/cryptocurrency/25/10/48141300/litecoin-surges-10-bucking-bitcoin-ethereum-drop-awaits-spot-etf-approval)

[4] Canary Capital Nears Greenlight for $1B Litecoin and Hedera Spot ... (https://www.fxleaders.com/news/2025/10/08/canary-capital-nears-greenlight-for-1b-litecoin-and-hedera-spot-etfs/)

[5] Litecoin ETF By Grayscale Delayed Again By SEC Until October (https://www.coingabbar.com/en/crypto-currency-news/litecoin-etf-by-grayscale-delayed-again-by-sec-until-october)

[11] Litecoin ETF Decision Postponed, LTC Price Eyes Key ... (https://coincentral.com/litecoin-etf-decision-postponed-ltc-price-eyes-key-breakout/)