Litecoin (LTC) could be the next cryptocurrency to join the prestigious list of US spot exchange-traded funds (ETFs). Bloomberg analyst James Seyffart shared this news on platform X, and expectations are high.
An approval could trigger a significant price increase, similar to previous ETF approvals for Bitcoin (BTC) and Ethereum (ETH).
Modified request reinforces rumors
Seyffart’s rumors follow a recent move by asset manager Canary Capital, which filed an amended S-1 filing for their Litecoin ETF. This document indicates that US Bancorp Fund Services will act as fund manager. Coinbase Custody Trust and BitGo would be responsible for the custody of the Litecoin in the fund.
Bloomberg analysts see the adjustment as a possible indication that the US Securities and Exchange Commission (SEC) is involved in the process. With the upcoming changing of the guard at the SEC, with Gary Gensler stepping down on January 20 and possibly being succeeded by Paul Atkins, the chances of accelerated approval of crypto ETFs appear to be growing. Atkins is known for its pro-crypto stance.
Don’t cheer too early
While the recent filing appears to be a positive step, it is important to realize that a formal 19b-4 filing is still required to begin the approval process. This type of filing is required for a proposed rule change to be officially approved by the SEC. Without this step, the possible launch of a Litecoin ETF remains just speculation for now.
Litecoin price responds positively
The news of a possible ETF approval comes at a time when Litecoin’s price is climbing out of a low. The digital coin rose by as much as 17.5% today and is valued at almost $120 at the time of writing.
If the ETF does eventually materialize, it could trigger a new wave of buying pressure. The involvement of institutional investors in particular could have a significant impact on the demand for Litecoin and thus push the price further up.
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Source: https://newsbit.nl/litecoin-ltc-mogelijk-de-volgende-in-de-rij-voor-een-amerikaanse-spot-etf/
