Litecoin Surges 4% on Potential SEC ETF Approval
1min read Litecoin's native token, LTC, has experienced significant gains due to speculation that the US Securities and Exchange Commission (SEC) may approve a spot Litecoin exchange-traded fund (ETF) proposed by Canary Capital. The digital asset rose over 4% to reach $89, marking its highest level since March, while most other cryptocurrencies remained relatively stable during the reporting period. This surge places LTC among the top two performers within the 25 largest digital assets by market capitalization over the past day. Litecoin is currently the 21st-largest crypto by market capitalization.
Market analysts attribute this renewed interest to optimism surrounding a regulatory decision expected later today. Investor interest in Litecoin surged after an ETF analyst commented on the upcoming SEC deadline, suggesting that the agency may take action soon. The analyst noted that Litecoin appears to have a better chance of early approval than other altcoin-based ETF proposals. Last week, the SEC delayed multiple filings involving other cryptocurrencies, such as Solana, XRP, Dogecoin, and Ethereum. However, the financial regulator has yet to issue any delay or rejection related to Canary’s Litecoin ETF application. The analyst cautioned that a delay remains the more likely outcome given the broader regulatory pattern.
Canary Capital submitted its initial S-1 registration for the Litecoin ETF in October 2024. In January 2025, Nasdaq followed up with a 19b-4 filing to list the fund for trading. Notably, the SEC has already acknowledged the applications, a critical first step toward potential approval. The final deadline for the agency to make a decision is May 5. If the fund is approved, investors would gain direct exposure to Litecoin without holding the token.
