Litecoin price rises by double digits as ETF speculation increases

The price of Litecoin rose double digits over the past 24 hours to hit a four-week high of $118 as optimism builds around the possible approval of a Litecoin-based exchange-traded fund.

At the time of publication, Litecoin is trading around $117, up 15.1% on the day, according to data from CoinGecko.

Litecoin’s rise followed Canary Capital’s change to its S-1 registration form with the U.S. Securities and Exchange Commission (SEC) on January 15, a move that analysts interpreted as a significant step toward regulatory involvement.

Such changes often indicate that feedback has been received from supervisors, and the changes made can provide clues as to the status of the review.

If the SEC greenlights Canary’s ETF proposal, Litecoin would join Bitcoin And Ethereum as the only cryptocurrencies with US-approved spot ETFs.

The filing prompted comment from Bloomberg ETF analysts Eric Balchunas and James Seyffart, with Balchunas pointing to “babble that the Litecoin S-1 has received comment from the SEC,” arguing that it “bodes well” for predictions that Litecoin will likely be the next crypto approved for a spot ETF.

On Wednesday, Balchunas warned that the upcoming leadership transition at the SEC, which will see Paul Atkins replace Gary Gensler as the agency’s chairman, introduces a “huge variable” to the regulatory outlook.

Seyffart noted that while the filing indicates “involvement” by the SEC, a 19b-4 filing — a regulatory filing that formally starts the clock on approval or denial — is needed to move the process forward.

Canary Capital’s amendments targeted its proposed agreements with crypto custodians Coinbase and BitGo, addressing custodial arrangements to comply with SEC standards.

The filing includes updates regarding accounting, marketing, legal and tax provisions, ensuring its alignment with the SEC and regulatory requirements.

Analysts believe these revisions could speed up the SEC’s review process.

Blockchain analytics firm Santiment noted increased activity among large Litecoin holders, with “whales” and “sharks” accumulating approximately 250,000 LTC worth $29 million since January 9.

Despite the rally, Litecoin remains 72% below its all-time high of $410 reached in May 2021, leaving room for growth if regulatory approval is secured.

Competition among altcoins to secure the next US spot crypto ETF is increasing, with companies like Bitwise and VanEck having already filed 19b-4 forms for Solana ETFs, giving them a procedural advantage.

Analysts at JPMorgan predict and estimate significant inflows into approved crypto ETFs Solana And XRP ETFs can collectively attract $14 billion in their first year.

The market is closely watching the SEC leadership transition as Paul Atkins assumes the chairmanship.

Known for its crypto-friendly stance, the community expects that Atkins would create a more favorable environment for adoption of crypto ETFs.