Litecoin surges amid growing optimism for SEC ETF approval
Litecoin surges amid optimism for ETF approval
Litecoin has witnessed a significant surge in daily transactions and market capitalization as growing optimism surrounds the potential approval of a spot Litecoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
Between February 15 and February 21, Litecoin processed more than $9.6 billion in daily transaction volume, marking a sharp rise in network activity, according to Crypto News.
Meanwhile, daily transactions have increased by 243% over the past five months, a period that coincides with Canary Capital’s October filing for a spot LTC ETF.
ETF momentum fuels Litecoin’s rise
The prospect of a regulated investment vehicle for Litecoin has drawn heightened interest from institutional investors. Market analysts suggest that a spot ETF would provide traditional investors with exposure to Litecoin without the need for direct crypto ownership, lowering barriers to entry.
Applications from asset managers such as Grayscale and CoinShares have further strengthened the bullish sentiment. Bloomberg analysts estimate a 90% chance that the SEC will approve a Litecoin ETF, positioning it as the next major cryptocurrency to join the ETF market after Bitcoin.
Litecoin’s market capitalization surged by 46% between February 1 and February 19, reflecting increased investor confidence. Analysts attribute this growth to broader crypto adoption and regulatory developments, particularly following the approval of spot Bitcoin ETFs in early 2024.
With the SEC now reviewing multiple spot Litecoin ETF filings, investors anticipate a decision in the coming months. If approved, a Litecoin ETF could expand crypto accessibility and further integrate digital assets into traditional financial markets.
Recently, the SEC has invited public comments on Grayscale's proposal to convert its Litecoin Trust into an exchange-traded product. The public has 21 days to submit feedback following its publication in the Federal Register.
