"Canary's Litecoin ETF Moves Closer to Reality on DTCC Listing"

Canary Capital's Spot Litecoin ETF has made a significant step towards potential launch, as it appeared on the Depository Trust and Clearing Corporation (DTCC) website. This move has sparked enthusiasm in the crypto market, with investors eagerly awaiting the expected approval.

The DTCC, a crucial player in global financial markets, processes trillions of securities transactions daily. The appearance of Canary Capital's LTC fund on the DTCC's list is a key preparatory step towards the fund's launch. The fund is listed under the ticker LTCC, and a green light from the U.S. Securities and Exchange Commission (SEC) would make Litecoin the first crypto beyond Bitcoin and Ethereum to secure a spot ETF in the United States.

Canary Capital submitted its spot LTC filing in October 2024, followed by similar applications from companies including Grayscale and Coinshares. Canary's application is expected to be the first to secure a decision from the SEC. While the fund's approval is still pending, the DTCC listing indicates that the issuer is making preparations for when it is approved.

The SEC has a period of 45 days, which could be extended to 90 days, from the date of publication of the 19b-4 proposal in the Federal Register to decide whether to approve or deny the proposed rule change. Notably, the proposed rule change for the Canary Litecoin ETF was published in the Federal Register on Feb. 4, bringing it one step closer to becoming a reality.

Following the DTCC listing, LTC prices jumped circa 7%, climbing from an intraday low of $126.5 to $138.52 before retracing slightly to $135 as of publication time. This price increase reflects the growing excitement and investor demand for a potential Litecoin ETF.

In a detailed analysis, Santiment observed that Litecoin's market capitalization spiked by 45% from Feb. 2 to 19, signaling increased investor demand. Additionally, the Litecoin network has witnessed a strong rise in network utility, with daily transactions on the Litecoin network hitting $9.6 billion per day. This growth in network utility can be attributed to the growing excitement around a potential Litecoin ETF, 13 months after Bitcoin's first ETFs were approved by the SEC.