The chances of Litecoin ETF approval soared to 85% on Polymarket, following the listing of Canary Capital’s spot Litecoin ETF on the Depository Trust and Clearing Corporation (DTCC) system.
This marks a significant step in the growing push for altcoin ETFs in the U.S., coming after the Ethereum ETF approval in May 2024.
Canary Capital’s Litecoin ETF Gains Momentum
📈 Polymarket Odds: Up 35% in a day, reaching 85%
📌 DTCC Listing: Added under the LTCC ticker
⚠️ SEC Decision: Still pending approval
The Litecoin Foundation celebrated the listing, calling it a key preparatory step for potential trading. However, ETF analyst Eric Balchunas cautioned that while this is a sign of progress, it does not guarantee SEC approval.
SEC’s Next Move and Market Sentiment
The SEC formally acknowledged Canary Capital’s application three weeks ago, opening it for public comments. This procedural step indicates that the filing meets initial regulatory requirements.
Litecoin’s classification as a Bitcoin fork and commodity could improve its approval chances, unlike other crypto ETFs like XRP, which faces ongoing legal battles.
Additionally, Nasdaq has filed 19b-4 forms to list two CoinShares ETPs, including a Litecoin ETF. These moves highlight institutional interest in diversifying crypto investment options.
What This Means for Litecoin’s Price
Despite the optimism, Litecoin’s price reaction remains subdued. LTC has only gained 3.37%, trading at $134.25 as of today.
Market experts remain cautiously optimistic, noting that while Polymarket’s prediction odds are high, the SEC’s approval process is rigorous
