Litecoin Price Jumps Double-Digits As ETF Speculation Ramps Up

2025-01-17 14:41:59 Primitive Reading

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Litecoin. Image: Shutterstock

The price of Litecoin soared by double-digits in the past 24 hours to reach a four-week high of $118, as optimism brews around the potential approval of a Litecoin-based exchange-traded fund.

At time of publication, Litecoin is trading at around $117, up 15.1% on the day, per data from CoinGecko.

Litecoin's surge followed Canary Capital’s amendment to its S-1 registration form with the U.S. Securities and Exchange Commission (SEC) on January 15, a move analysts interpret as a major step toward regulatory engagement.

Such amendments often indicate feedback has been received from regulators, and the changes made can provide clues about the status of the review.

If the SEC gives Canary's ETF proposal the green light, Litecoin would join Bitcoin and Ethereum as the only cryptocurrencies with U.S.-approved spot ETFs.

The filing prompted commentary from Bloomberg ETF analysts Eric Balchunas and James Seyffart, with Balchunas pointing to "chatter that the Litecoin S-1 had gotten comments back from SEC,” arguing that it "bodes well" for predictions that Litecoin is likely to be the next crypto approved for a spot ETF.

On Wednesday, Balchunas cautioned that the SEC’s upcoming leadership transition, with Paul Atkins set to replace Gary Gensler as the agency’s chairman, introduces a “huge variable” in the regulatory outlook.

Seyffart noted while the filing indicates "engagement" from the SEC, it will require a 19b-4 submission—a regulatory filing that formally starts the clock for approval or denial—to advance the process.

Canary Capital’s amendments focused on its proposed agreements with crypto custodians Coinbase and BitGo, addressing custodial arrangements to meet SEC standards.

The filing includes updates related to accounting, marketing, legal, and tax provisions, ensuring its alignment with the SEC’s with regulatory requirements.

Analysts believe these revisions could expedite the SEC’s review process.

Blockchain analytics firm Santiment noted increased activity among large Litecoin holders, with “whales” and “sharks” accumulating approximately 250,000 LTC worth $29 million since January 9.

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