Litecoin Transactions Surge Amid ETF Hopes

Litecoin daily transactions have surged in recent weeks, driven by growing optimism surrounding the potential approval of a spot Litecoin ETF. Between February 15 and 21, Litecoin (LTC) processed over $9.6 billion in daily volume, as investors anticipated a positive decision from the U.S. Securities and Exchange Commission (SEC).

Santiment data revealed a significant increase in user activity, with daily transactions up by 243% over the past five months. This surge coincides with Canary Capital's filing for a spot LTC ETF with the SEC in October. Additional applications from issuers such as Grayscale and CoinShares have further bolstered the network's bullish momentum. According to Santiment, LTC's market capitalization surged by 46% between February 1 and 19.

Wrapping digital assets in ETFs enables investors to gain crypto exposure through regulated markets, similar to stock trading. It also eliminates the need to manage private keys or wallets, lowering technical barriers to entry and expanding crypto access. Issuers have been eyeing an expanded crypto ETF suite 13 months after spot Bitcoin (BTC) products debuted on Wall Street.

Analysts believe that Litecoin has the highest approval chances among the proposed crypto ETFs. Canary Capital's filing is expected to be the first Litecoin fund out of the gate, as it was the first issuer to file its S-1 documents. The SEC has started reviewing all pending spot LTC funds, indicating a potential approval in the near future.