Litecoin’s Meteoric Rise: A Push Toward ETF Approval Sparks Optimism

Litecoin's price skyrocketed by over 15% in the past 24 hours, reaching a four-week high of $118 as anticipation builds around the potential approval of a Litecoin-focused exchange-traded fund (ETF).

As of now, Litecoin is trading at approximately $117, marking a notable surge driven by Canary Capital’s updated S-1 registration form submitted to the U.S. Securities and Exchange Commission (SEC) on January 15. Analysts view this development as a promising step in regulatory engagement, suggesting that the SEC’s feedback is being incorporated into the revised proposal.

Approval of this ETF could place Litecoin alongside Bitcoin and Ethereum as the only cryptocurrencies with U.S.-approved spot ETFs. Bloomberg analysts Eric Balchunas and James Seyffart highlighted growing optimism, with Balchunas noting “positive chatter” about the SEC’s review progress. However, Balchunas also flagged the upcoming SEC leadership transition, as Paul Atkins prepares to replace Gary Gensler as chairman, introducing uncertainty to the regulatory landscape.

Seyffart emphasized the need for a formal 19b-4 filing to initiate the approval countdown. Canary Capital’s revisions addressed critical areas such as custodial agreements with Coinbase and BitGo, marketing strategies, and compliance with SEC requirements, potentially expediting the review process.

Blockchain analytics from Santiment showed intensified activity among large Litecoin holders, with whales and sharks accumulating 250,000 LTC (worth $29 million) since January 9