Canary Capital has made a significant stride in the cryptocurrency investment world with the listing of its spot Litecoin ETF on the Depository Trust and Clearing Corporation (DTCC) under the ticker LTCC. This milestone marks an important step toward the potential launch of the ETF, though regulatory approval from the U.S. Securities and Exchange Commission (SEC) is still pending.
The official listing on the DTCC, which occurred late on February 20, 2025, does not guarantee that the ETF will commence trading immediately. Instead, it indicates that the necessary infrastructure for trading is being established. The DTCC plays a vital role in the U.S. securities market, acting as a clearing and settlement provider and allowing both active ETFs and pre-launch funds that await approval.
Canary Capital submitted its filing for the Litecoin (LTC) ETF in October 2024, ahead of similar proposals from major financial firms like Grayscale and CoinShares. If granted approval, this ETF would become the first U.S. spot ETF for a cryptocurrency beyond Bitcoin (BTC) and Ethereum (ETH), opening doors for additional altcoin ETFs in the future.
Currently, the SEC is in the process of reviewing the ETF application, following Nasdaq’s 19b-4 filing. Last month, the SEC opened the proposal for public comments, and they have up to 90 days from February 4, 2025, to reach a decision. Notably, Bloomberg ETF analyst Eric Balchunas has expressed a 90% likelihood for the approval of the Litecoin spot ETF, instilling further confidence in investors and the market.
In light of this positive news, Litecoin’s price has surged approximately 4% within 24 hours, reflecting heightened investor optimism regarding the ETF’s potential approval. According to Santiment, Litecoin witnessed a remarkable 46% rise in market capitalization from February 2 to February 19, coinciding with an impressive daily transaction volume of $9.6 billion during this period. Such developments reinforce Litecoin’s reputation in the competitive cryptocurrency market.
As the regulatory landscape for cryptocurrency continues to evolve, all eyes will be on the SEC and its decisions regarding upcoming ETF applications. The approval of the Litecoin spot ETF could serve as a strong catalyst in the cryptocurrency space, paving the way for future innovations and investments.
