"Litecoin ETF: Canary Capital's DTCC Listing Sparks Trading Speculation"

Canary Capital's proposed Litecoin (LTC) ETF has been listed on the Depository Trust and Clearing Corporation (DTCC), sparking speculation that the product could begin trading soon. Analysts have expressed optimism about the approval odds, with Bloomberg ETF analyst Eric Balchunas maintaining a 90% approval rating for the LTC ETF. However, he noted that the DTCC listing was a preparation for an ETF launch, but not an outright approval signal.

Nate Geraci of ETF Store echoed the sentiment, stating that the LTC ETF could begin trading soon, citing similarities to the Bitcoin (BTC) ETF approval process. He said, "Litecoin ETF 'listed' on DTCC. Having flashbacks to spot BTC ETFs...This doesn’t mean anything, but I also think highly likely that LTC ETF is coming to a brokerage near you."

The Canary LTC ETF 194-b filing entered the Federal Register on February 4. The SEC could approve or dismiss the filing within the next 45-90 days after listing on the Federal Register, translating to a likely SEC decision around late March or early May. Additionally, Grayscale and CoinShares have filed similar LTC ETF applications and have been acknowledged by the regulator.

Traders have jumped on LTC amid the ETF speculation. According to Santiment, LTC's market cap surged 46% while daily trading volume surged nearly to $10B in the past week alone. Part of this growth comes from its strong rise in network utility, which has been processing $9.6B in daily transaction volume over the past 7 days.

Speculative interest was also observed in the Futures markets, where traders use leverage to capitalize on opportunities. According to Coinglass, LTC's Open Interest (OI) rates increased to $869M. During the 2021 cycle peak, the OI surged to $1B, suggesting current speculative interest is close to last cycle highs.

On the price charts, LTC was one of the few altcoins that held November gains. In February alone, the altcoin was up about 37% and valued at $134 at press time. However, the price action was at a key short-term supply