- Canary Capital amended its S-1 filing for a Litecoin ETF, hinting at potential SEC approval.
- Litecoin’s price rose 15% due to whale accumulation, fueled by ETF speculation.
- If approved, Solana is ahead in the ETF race, with predictions of $14 billion in inflows.
Canary Capital lately amended its S-1 filing for a Litecoin exchange-traded fund (ETF), a move seen to spur speculation that Litecoin might be the next digital asset to get the green light from the U.S. Securities and Exchange Commission (SEC). If approved, it would become the third crypto ETF to hit the U.S. market after Bitcoin and Ether, another major milestone for the altcoin.
Bloomberg analysts Eric Balchunas and James Seffart commented on the filing. Both described the development as major. Balchunas noted on X that this aligns with their prediction that Litecoin’s probably next for ETF approval but added that the impending change at the top of the SEC makes things less certain.
The amendment, filed on January 15, reflects changes to agreements with custodians Coinbase and BitGo and covers sensitive areas, including accounting, marketing, legal, and tax. Amended S-1 filings tend to reflect that feedback may still be exchanged with the SEC but are a step closer to approval. However, Seffart said Canary’s filing is still waiting on a 19b-4 submission that starts the regulatory clock of consideration.
Litecoin Surges 15 % on Whale Accumulation
Litecoin’s price jumped over 15% between January 15 and 16, outperforming other cryptocurrencies with market capitalizations above $8 billion, as data from CoinGecko indicates. According to blockchain analytics company Santiment, it was due to significant accumulation from whales and “sharks” after these collectively bought up 250,000 LTC with a total value of $29 million since January 9.
This price momentum underscores growing investor confidence, potentially fueled by the prospect of the ETF approval.
While Litecoin makes headway, Solana appears further along in the ETF race. In November, Canary Capital, Bitwise, VanEck, and 21Shares filed 19b-4 forms for spot Solana ETFs, putting the altcoin closer to regulatory judgment. Analysts predict significant inflows if ETFs for Solana or XRP gain approval. This approval makes XRP a contender.
JPMorgan estimates that a spot Solana ETF could attract between $3 billion and $6 billion in assets during its first year, while XRP’s ETF could see $4 billion to $8 billion in inflows. These products might rake in $14 billion, a “reasonable guess,” according to Balchunas.
Litecoin ETF Could Mark a New Era in 2024
Adding to the intrigue, the timing of this filing coincides with a transformative moment for U.S. crypto regulation: President-elect Donald Trump is set to inaugurate his administration-very much pro-crypto-on January 20; on the same day, Gary Gensler will step down as SEC chair, with Paul Atkins-an advocate for market innovation-slated to take the helm.
Analysts speculate that crypto ETFs would find a more encouraging regulatory environment under Atkins’s leadership, which could help improve Litecoin’s chances.
Approval would have the Litecoin ETF serve as a tipping point in the trend of altcoins as proof of rising institutional interest and regulatory acceptance. Because whales already have taken a major stake in Litecoin and are leading its rally, besides forecasts from analysts looking forward to a huge ETF inflow, 2024 is the year likely to make or set it forever among the altcoins ranking the greatest market capitalization.
As the SEC deliberates, all eyes remain on how leadership changes and market dynamics will shape the next chapter in crypto ETFs.
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