A Litecoin ETF has a high chance of being approved, which is reflected in the noticeable rises in price.
Crypto bettors on Polymarket, a decentralized prediction platform, now estimate a 51% chance of the US Securities and Exchange Commission (SEC) giving the green light for a Litecoin-focused fund after Canary Capital amended its S-1 registration form.
Canary Capital modifies S-1 filing
Canary Capital has updated its S-1 submission with the financial regulator on January 15. According to market analysts, this is a major step towards a Litecoin ETF.
The S-1 form—an initial registration document filed with the SEC—details new securities offerings, including the intended use of funds and an overview of the securities.
Analysts see this as an indication that Canary Capital is in discussions with the SEC, but formal approval still remains uncertain.
James Seyffart of Bloomberg ETF noted that the amended document reflects an active engagement by the SEC. However, he emphasized that success is not guaranteed without submitting a 19b-4 filing—a critical step in the approval process.
Similarly, Eric Balchunas, Bloomberg’s Senior ETF analyst, highlighted that this development could place Litecoin ahead of other altcoins in the race for an ETF. He thinks that the SEC will approve Litecoin next.
“He added”
“This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that’s a huge variable.”
The SEC’s approval of the Litecoin ETF would represent a milestone in the history of the digital asset. Litecoin, along with Bitcoin and Ethereum, would be the only cryptocurrencies that have spot ETFs approved by the US. It would then further solidify its position on the market.
Litecoin is on the rise
The prospect of regulatory approval has already triggered a bullish response in Litecoin’s price.
According to CryptoSlate’s data, the crypto surged over 17% in the past day, reaching a four-week high of $120 before stabilizing at $118 as of press time.
Moreover, investor interest has also been reflected in trading activity, with Litecoin’s 24-hour trading volume jumping 240% to $1.7 billion.
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