"Litecoin ETF Approval Odds Soar to 85% on Polymarket"
1min read Litecoin ETF approval odds have surged to 85% on Polymarket following Canary Capital's proposed spot Litecoin ETF's secure listing on the Depository Trust and Clearing Corporation (DTCC) system. This marks a significant development in the US race for more altcoin ETF approvals, with the first one, Ethereum ETF, having been approved by the US SEC in May 2024.
Canary Capital's Litecoin ETF has been listed on the DTCC system under the LTCC ticker, with the Litecoin Foundation sharing the news on X (Twitter). The DTCC is a key part of global financial markets and processes trillions of dollars in securities transactions each day. This listing is a key preparatory step for the fund's potential launch and indicates progress in establishing the trading framework. However, it does not guarantee approval from the US SEC, whose decision remains pending.
The recent listing on the DTCC comes just three weeks after the SEC formally acknowledged Canary Capital's Litecoin ETF application, opening the proposal to public commentary. Canary Capital initially filed its application for this Litecoin ETF in October 2024, positioning it among the pioneering proposals awaiting SEC evaluation for this financial instrument. This move aligns with a broader trend of asset managers seeking to introduce Litecoin-based financial products.
Analysts have expressed cautious optimism regarding the approval prospects of Litecoin ETFs. Some suggest that Litecoin's status as a Bitcoin fork and its classification as a commodity may enhance its likelihood of receiving regulatory approval compared to other cryptocurrency funds like XRP, whose legal battle with the SEC remains an impediment.
Although prediction markets like Polymarket observe a surge in approval odds for the Litecoin ETF, it remains only speculative. The SEC's approval process is meticulous, aiming to ensure that any new financial products meet stringent standards for investor protection and market integrity. As such, while the DTCC listing represents a forward step, the ultimate fate of Canary Capital's spot Litecoin ETF hinges on SEC review and decision.
