Litecoin Surges 15% on ETF Hopes

Litecoin (LTC) Price Surges 15% Amid ETF Speculation

Litecoin (LTC) has experienced a significant price increase of 15% following news of intensifying speculation surrounding a potential exchange-traded fund (ETF). The cryptocurrency's price surged to $117, with trading volume and open interest also increasing, indicating growing market participation.

The recent developments come as the Securities and Exchange Commission (SEC) has begun reviewing Canary Capital's proposal for a Litecoin ETF, opening a 21-day public comment period following Nasdaq's filing. This marks the first altcoin ETF application to reach this stage of the regulatory process.

The Canary Litecoin ETF aims to track the CoinDesk Litecoin Price Index (LTX) and would implement a cash-only system for share creation and redemption. This structure would allow investors to gain exposure to Litecoin through their standard brokerage accounts, eliminating the need for direct cryptocurrency management.

Bloomberg Senior ETF analyst Eric Balchunas highlighted the filing's progress on social media platform X, noting that it "has made the most progress in meeting regulatory requirements." The question remains whether the SEC will utilize the entire 240-day review period or opt for a faster approval timeline.

Canary Capital's proposal comes as part of a broader wave of crypto ETF applications. Grayscale has filed to convert its existing Litecoin Trust into an ETF, while CoinShares has submitted an S-1 form for a separate offering. The increased interest follows the successful launches of spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May of the same year.

The proposed ETF structure includes a comprehensive custody framework and involves specialized financial firms known as Authorized Participants. These broker-dealers would handle the creation and redemption of ETF shares through cash transactions rather than dealing directly with the cryptocurrency.

Under Exchange Act Rule 19b-4, self-regulatory organizations like Nasdaq must file proposed rule changes with the SEC. This process ensures transparency and compliance with investor protection standards through public disclosure and comment periods.

Market activity suggests increasing optimism around the potential approval. The Relative Strength Index (RSI) reached 53.52 and showed upward momentum, while the MACD indicator displayed