Litecoin (LTC) Price Surges Ahead of Potential US SEC Approval of Canary Capital's Spot ETF

Litecoin's native token, LTC, has posted notable gains amid speculation that the US Securities and Exchange Commission (SEC) may approve a spot Litecoin exchange-traded fund (ETF)

Litecoin’s native token, LTC, has posted notable gains amid speculation that the US Securities and Exchange Commission (SEC) may approve a spot Litecoin exchange-traded fund (ETF).

As of Monday morning, LTC is trading up over 4% to reach $89, hitting the highest level since March, according to CryptoSlate’s data.

Most other cryptocurrencies remained flat during the reporting period. The renewed attention on LTC, the 21st-largest crypto by market capitalization, also saw it become one of the top two best performers among the 25 largest digital assets in the past day.

Market analysts suggest that the renewed interest in LTC stems from optimism surrounding a regulatory decision expected later today.

Litecoin ETF gains momentum

Investor interest in Litecoin surged after Bloomberg ETF analyst James Seyffart commented on the upcoming SEC deadline.

He suggested that the agency may take action soon, adding that Litecoin appears to have a better chance of early approval than other altcoin-based ETF proposals.

Last week, the SEC delayed multiple filings involving other crypto, such as Solana, XRP, Dogecoin, and Ethereum. However, the financial regulator has yet to issue any delay or rejection related to Canary’s Litecoin ETF application.

Considering this, Seyffart noted that: “If any asset has a chance of early approval it’s Litecoin.”

However, he added that a delay is still more likely given the broader regulatory pattern.

Canary Capital submitted its initial S-1 registration for the Litecoin ETF in October 2024. Afterward, Nasdaq submitted a 19b-4 filing to list the fund for trading.

The SEC has already acknowledged both applications, a critical first step toward potential approval. The final deadline for the agency to make a decision is May 5.

If approved, the fund would allow investors to gain direct exposure to Litecoin without needing to hold the token.