The approval of a Litecoin ETF by the U.S. Securities and Exchange Commission (SEC) appears imminent, according to Bloomberg’s Senior ETF Analyst Eric Balchunas. His prediction follows the amended S-1 filing submitted by Canary Capital for its proposed Litecoin ETF, signaling potential SEC engagement.
Amended Filing Suggests SEC’s Interest
Canary Capital originally filed the S-1 registration form for the Litecoin ETF in October 2024. On January 15, 2025, the firm submitted an amended filing, which included the announcement that U.S. Bancorp Fund Services would act as the administrator, while Coinbase Custody Trust and BitGo would serve as custodians for the Litecoin assets. Industry analysts, including Balchunas, suggest that the amended filing could indicate that the SEC has reviewed and provided feedback on the application, although no formal 19b-4 filing—required to start the approval process—has been made.
“We had heard chatter that the Litecoin S-1 had gotten comments back from [the] SEC,” Balchunas shared on X (formerly Twitter), reinforcing his belief that Litecoin is poised to become the next cryptocurrency ETF approved by the SEC.
Leadership Change May Impact Timeline
The timing of the Litecoin ETF’s approval could be influenced by a change in SEC leadership. Current SEC chair Gary Gensler is set to step down, with former SEC commissioner Paul Atkins nominated as his successor. Atkins, a known supporter of the cryptocurrency industry, could potentially affect the approval process, though his confirmation by the Senate is still pending.
Balchunas noted that this leadership transition introduces uncertainty into the timeline for the Litecoin ETF’s approval.
Rising Interest in Spot Crypto ETFs
Litecoin, launched in 2011 as a more efficient version of Bitcoin, is considered one of the most stable blockchains in the crypto space. The news of the ETF filing amendment has sparked significant market movement, with Litecoin’s price jumping by 18% to $119.46, and its trading volume surging by over 270%. Analysts predict that Litecoin could see its price break the $130 mark, with a future target of $170.
The excitement surrounding Litecoin’s potential ETF approval comes on the heels of successful spot Bitcoin and Ethereum ETFs, which have generated significant market interest and outperformed expectations. This has encouraged issuers to pursue ETFs for other altcoins, such as Solana and XRP, which are expected to attract significant investments.
Next Steps for Litecoin ETF Approval
Despite the progress marked by the amended filing, it remains unclear when the Litecoin ETF will gain approval. The filing of a 19b-4 application, which would formally initiate the SEC’s decision-making process, has yet to occur, and Canary Capital has not indicated when this step will take place. Industry experts are now awaiting the SEC’s response to the filing, with growing momentum for the approval of Litecoin’s ETF.
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