A US-based exchange-traded fund (ETF) focused on Litecoin (LTC) may soon make headlines as Nasdaq takes steps toward regulatory approval.
On January 16, Nasdaq submitted a formal 19b-4 filing for the listing and trading of the “Canary Litecoin ETF,” introduced by Canary Capital.
The filing outlines key roles, with US Bancorp Fund Services, LLC serving as the fund’s administrator and US Bank NA handling cash custody. Coinbase Custody Trust Company LLC will secure the fund’s Litecoin holdings.
This filing marks the second phase of the regulatory approval process, following Canary Capital’s earlier S-1 amendment. Once the US Securities and Exchange Commission (SEC) acknowledges the filing and publishes it in the Federal Register, the countdown to a decision begins.
Bloomberg ETF analyst James Seyffart predicts that Litecoin could be the first altcoin-related ETF approved in 2025. He argues that Litecoin holds an advantage over competitors like Solana and XRP because it lacks the regulatory scrutiny that has plagued those tokens.
He stated:
“I view a Solana or an XRP ETF approval from the SEC as a matter of “when” not “if” at this point but Litecoin *MIGHT* get through first — largely because of a lack of accusations that Litecoin is a security from the SEC.”
However, Seyffart notes that the SEC’s leadership transition will significantly influence this outcome. With Gary Gensler stepping down, President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner with pro-crypto leanings, to lead the agency. Atkins’ appointment could signal a more favorable regulatory environment for crypto assets.
Meanwhile, optimism about the potential approval extends to prediction markets. Polymarket bettors currently estimate a 71% chance that the SEC will greenlight a Litecoin ETF.
Litecoin Price Rallies Amid ETF Speculation
The news surrounding the ETF has ignited significant excitement in the Litecoin community.
Over the past 24 hours, Litecoin’s price surged nearly 24%, reaching a four-week high of $129.49, according to CoinMarketCap. This marks the largest single-day gain among the top 25 cryptocurrencies by market capitalization during the reporting period
The price spike aligns with increased trading activity, as Litecoin’s 24-hour volume jumped 300% to more than $1.7 billion.
Blockchain analytics firm Santiment attributes this surge to rising investor enthusiasm, fueled by the potential for an ETF to drive institutional adoption of Litecoin. According to the firm, social media platforms are abuzz with discussions around Litecoin, which is amplifying the asset’s momentum alongside that of XRP.
