The cryptocurrency market is buzzing with excitement as LTC experiences a significant price surge following some positive developments concerning CoinShares’ Litecoin ETF.
The price of Litecoin has climbed by over 12% today, reaching an intraday high of $139.41 before stabilizing at around $136.22 at press time, according to CoinGecko.
Notably, Litecoin’s impressive performance comes after massive price swings as the market anticipates the potential approval of a Litecoin Exchange Traded Fund (ETF).
US SEC begins formal review of CoinShares’ Litecoin ETF
The US Securities and Exchange Commission (SEC) has initiated a formal review of CoinShares’ application for a Litecoin ETF, following a filing by Nasdaq on February 10.
The SEC has acknowledged the proposal and requested public comments within 21 days of their publication in the Federal Register.
Following the comment period, the agency may approve, disapprove, or initiate further proceedings for additional review.
The CoinShares Litecoin ETF, structured as a Delaware Statutory Trust, aims to mirror Litecoin’s price performance through the Compass Crypto Reference Index Litecoin – 4 pm NY Time, adjusted for expenses.
The trust’s sole assets would be Litecoin and cash, with shares representing fractional interests in these holdings.
Nasdaq has a surveillance-sharing agreement with Coinbase Derivatives to aid in this scrutiny, ensuring that the fund meets stringent regulatory standards for cryptocurrency custody and trading.
If approved, this ETF would not only provide investors with a regulated pathway to gain exposure to Litecoin without the need for direct custody but also mark a significant milestone in the integration of cryptocurrencies into traditional investment portfolios.
The transparency offered by the trust, including daily NAV, closing prices, and premium/discount data, would further bolster investor confidence.
Enthusiasts expect the SEC to approve the LTC ETF
The market’s response to this news has been palpable, with Litecoin’s market capitalization reaching $10.53 billion, while the 24-hour trading volume skyrocketed by 70.94% to $1.86 billion.
This surge in trading activity and price indicates that investors are closely watching these regulatory developments, hopeful for the legitimization and mainstream adoption of Litecoin through regulated financial products.
Bloomberg analysts have contributed to the optimism by suggesting that Litecoin might be the frontrunner for SEC approval in 2025 among the various cryptocurrency ETFs in the pipeline.
This anticipation has been echoed across financial news platforms and fueled discussions on social media, further amplifying the bullish sentiment around LTC.
Notably, the Coinshares Litecoin ETF isn’t the only LTC ETF-related news stirring the Litecoin pot.
In October last year, Canary Capital Group became the first to file for a Litecoin ETF after it submitted its Form S-1 for the Canary Litecoin ETF.
Later, on January 25, Grayscale Investments filed for multiple crypto ETFs, including one for Litecoin, signalling a broader trend towards regulated crypto investment opportunities.
Moreover, the enthusiasm isn’t confined to the US.
In Australia, Monochrome Asset Management has filed for the Monochrome Litecoin ETF (LTCC), aiming to expand regulated access to Litecoin, complementing their existing Bitcoin and Ethereum ETFs.
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