Litecoin ETF: Next in Line for SEC Approval, Says Bloomberg Analyst

• Bloomberg Senior ETF Analyst Eric Balchunas has expressed confidence that the Litecoin ETF has a strong chance of becoming the next spot cryptocurrency ETF to gain approval in the U.S.
• Canary Capital’s amendment of its ETF filing and the impending departure of current SEC chair Gary Gensler has driven LTC’s price up by 17% in the past 24 hours.

Since the approval of Bitcoin Exchange Traded Funds (ETFs) in January 2024, the cryptocurrency market has experienced a paradigm shift. The success of Bitcoin ETFs has sparked a surge of filings for new cryptocurrency ETFs with the U.S. Securities and Exchange Commission (SEC). Among these, Canary Capital’s proposed Litecoin ETF has emerged as a standout contender, generating widespread industry buzz.

In October 2024, Canary Capital filed its initial S-1 registration form with the SEC for a Litecoin ETF, aiming to provide investors with secure and regulated exposure to Litecoin (LTC). Often referred to as “digital silver” alongside Bitcoin’s “digital gold,” Litecoin has solidified its position as one of the oldest and most stable altcoins.

Momentum for the ETF grew further when Canary Capital submitted an amended S-1 form on January 15, 2025. In the filing, the company revealed that the U.S. Bancorp Fund Services will be the fund’s administrator, responsible for ensuring compliance and operational efficiency. Additionally, Coinbase Custody Trust and BitGo, two of the most trusted custodial providers, were selected to safeguard the fund’s Litecoin holdings.

Expert Analysis on the Litecoin ETF Filing

The updated filing has fueled optimism among analysts and market observers. Bloomberg Senior ETF Analyst Eric Balchunas took to X to share his insights, stating, “We had heard chatter that the Litecoin S-1 had gotten comments back from the SEC. This looks to confirm that, which bodes well for our prediction that Litecoin is most likely to be the next coin approved.”

However, he also flagged potential uncertainties tied to changes in the SEC leadership, adding, “All that said, the new SEC chair has yet to start, and that’s a huge variable.”

James Seyffart, another Bloomberg analyst, also weighed in, stating that while the SEC’s engagement with the filing was a promising sign, significant hurdles remain. Seyffart pointed out that no 19b-4 filing has been submitted yet. “The clock only starts once a 19b-4 is filed and acknowledged by the SEC,” he noted, suggesting that the approval process could still face delays. 

Adding to the conversation, ETF Store President Nate Geraci speculated on how a Litecoin ETF might shake up the market. He remarked, “It would be something to see if a spot LTC ETF was approved before an XRP or SOL fund,” referencing other top cryptocurrencies by market capitalization. 

Canary’s filing comes as current SEC Chair Gary Gensler prepares to step down on January 20, 2025. Gensler, known for his cautious stance on crypto, will be succeeded by Paul Atkins, a former SEC commissioner and vocal cryptocurrency advocate, pending Senate confirmation.

Amid the heightened anticipation for its ETF, Litecoin has shown positive market activity. According to blockchain analytics firm Santiment, Litecoin’s market cap has surged by 17% in the last 24 hours. The key driver appears to be accumulation by whales holding at least 10,000 LTC, amassing 250,000 Litecoin coins since January 9th. This accumulation has fueled a notable price rally, with Litecoin rising 17% in the past day and 18% over the past week to trade at $120.