Litecoin ETF on the Horizon? SEC Filing Fuels Price Surge & Whale Activity

Nasdaq has filed an essential form to gain approval for a spot Litecoin ETF with the U.S. Securities and Exchange Commission (SEC). 

The exchange submitted a 19b-4 form on behalf of Canary Capital for the proposed Canary Litecoin ETF. This form follows an amended S-1 filing that Canary Capital made earlier this week. 

The filing is crucial to the approval process, signaling that the SEC is reviewing the application.

Litecoin ETF Filing and SEC Review Process

The 19b-4 filing is a required document submitted by exchanges on behalf of issuers, signaling that a proposed change has been made. Once acknowledged by the SEC and published in the Federal Register, the clock starts for the SEC’s approval process. 

In the filing, U.S. Bancorp Fund Services, LLC is listed as the ETF administrator, while Coinbase Custody Trust will manage the custody of Litecoin.

This filing is part of a growing trend where multiple firms are seeking approval for crypto spot ETFs. Alongside Litecoin, other cryptocurrencies like Solana and XRP are also the focus of pending ETF filings. 

The approval of a Bitcoin ETF last year and the subsequent approval of Ethereum ETFs has sparked optimism that Litecoin could be next in line.

Market Sentiment and Analyst Forecasts

Bloomberg analyst Eric Balchunas is optimistic about Litecoin’s approval, noting that the S-1 filing comments from the SEC could be a positive signal. 

Balchunas stated that “chatter” about the status of the Litecoin S-1 points to a higher likelihood of approval. He added that a Litecoin ETF could become the next crypto spot ETF approved by the SEC.

https://twitter.com/EricBalchunas/status/1879662827943944264

In addition, James Seyffart, another Bloomberg analyst, added that while the 19b-4 filing is a good sign, it is not a definitive indication of approval. 

According to Seyffart, the key confirmation will come from an official rule change proposed by a self-regulatory organization like the NYSE. Therefore, the filing represents progress, but it is still early in the approval process.

Whale Activity and Price Surge

Litecoin’s recent price surge is tied to growing speculation surrounding the potential approval of a Litecoin spot ETF. Litecoin saw a 16% price increase, boosted by optimism in the market. 

On-chain data from IntoTheBlock shows that whale activity has also surged. The average transaction size for Litecoin increased by 25% from $38,100 on January 12 to $50,700 on January 16. 

This is a sign that large investors are positioning themselves for a potential price increase tied to ETF approval.

The increase in whale activity and price surge align with analysts’ predictions that approval of a Litecoin ETF could further boost the price. 

Litecoin’s growing popularity, coupled with positive analyst views, suggests that the token could see continued price momentum if the ETF is approved.

Other Firms Pursuing Crypto ETFs

The filing of a Litecoin ETF is part of a broader trend in the crypto space where firms like Bitwise and 21Shares have also submitted applications for Solana and XRP ETFs. 

While some of these filings have yet to see approval, the growing number of crypto ETFs signals a potential shift in the market. 

With speculation surrounding a crypto-friendly U.S. administration under President-elect Donald Trump, many investors are hopeful that the SEC will approve more crypto-related products soon.

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