The SEC has officially recognized Canary Capital's proposal for a Litecoin ETF and has invited the public to provide input. This could potentially be the first approved altcoin ETF in the US.
Litecoin ETF Approval: What We Know
Bloomberg analyst Eric Balchunas noted that Canary Capital's Litecoin ETF is the first altcoin 19b-4 filing acknowledged by the agency, while other similar applications were effectively shut down by the SEC. With the Commission's comments on the S-1 and this filing's acceptance, the Litecoin ETF is now the most advanced among altcoin proposals, meeting all necessary regulatory requirements.
Changes in SEC's Approach and Approval Chances
During Gary Gensler's tenure as SEC Chair, the agency often postponed decisions on crypto ETFs. However, following his departure, Acting Chair Mark Uyeda has shown a more receptive attitude towards crypto-related financial products, sparking a surge in ETF applications beyond just Bitcoin. This shift has fueled optimism among crypto investors. On Polymarket, traders have priced an 86% probability of Litecoin ETF approval.
Market Reaction to Litecoin ETF News
The news of Litecoin ETF approval has had a significant impact on Litecoin's price. Over the past day, LTC surged nearly 20%, trading above $132. This price movement has also strengthened the asset's monthly gains, bringing them closer to approximately 28%. Additionally, on-chain data hints at increasing whale accumulation, which could indicate large investors positioning themselves for a possible ETF approval.
The recognition of Canary Capital's Litecoin ETF proposal by the SEC could be a significant step towards the approval of the first altcoin ETF. Investor optimism and market reactions underscore the importance of this development for the crypto world.
