Litecoin (LTC) is experiencing significant market activity, with daily transaction volumes reaching $9.6 billion. This surge is largely attributed to growing anticipation surrounding potential U.S.-listed Litecoin exchange-traded funds (ETFs).
Between February 2 and February 19, on-chain analytics platform Santiment reported a 46% increase in Litecoin's market capitalization, driven by heightened network utility. This growth is particularly notable when compared to late August 2024, when LTC processed $2.8 billion in daily transactions—a 243% rise over five months.
Since early November, Litecoin's price has doubled, surpassing the broader crypto market's 42% gain in the same period. This bullish trend intensified following key ETF-related developments:
February 19: The U.S. Securities and Exchange Commission (SEC) acknowledged a rule-change filing for the CoinShares Spot Litecoin ETF to be listed on Nasdaq.
February 20: The Depository Trust and Clearing Corporation (DTCC) listed Canary Capital’s proposed Litecoin ETF under the ticker “LTCC,” indicating preparations for a potential market debut.The DTCC's involvement is significant, as it processes trillions of dollars in daily securities transactions. While the Litecoin Foundation views the DTCC listing as a "key preparatory step" toward launching an ETF, it does not guarantee approval. Bloomberg ETF analyst Eric Balchunas concurs, noting that while the listing is promising, it doesn't ensure immediate approval. Nonetheless, analysts estimate a 90% chance of approval this year.
Following the DTCC listing news, LTC surged 8.5%, rising from $127 to $138 before stabilizing. Over the past two weeks, Litecoin has gained nearly 30%, significantly outperforming Bitcoin, which has remained relatively flat.
Litecoin is not alone in the ETF excitement. The ETF wave has gained momentum, especially after SEC Chair Gary Gensler's resignation on January 20. 21Shares has filed with the SEC for a spot Polkadot ETF, and Tuttle Capital Management has applied for ten crypto-based leveraged ETFs, including funds tied to meme coins like Official Trump ($TRUMP) and Melania Meme ($MELANIA). Osprey Funds and REX Shares have filed for meme coin ETFs covering Dogecoin (DOGE), Official Trump ($TRUMP), and Bonk (BONK). The SEC has granted initial approval for Bitwise Asset Management’s Bitcoin and Ethereum ETF, which will track both BTC and ETH in a single fund.
With Litecoin's network activity surging and institutional interest growing, the possibility of a U.S.-approved Litecoin ETF in 2025 appears strong. While official approval is still pending, market reactions suggest that traders are positioning themselves for this potential development.
In summary, the growing interest in Litecoin ETFs reflects a broader trend of institutional adoption and regulatory progress in the cryptocurrency space. As the situation evolves, investors and industry participants will be closely monitoring these developments to navigate the dynamic crypto market landscape.
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