Is Litecoin About to Make History? The Shocking Truth Behind Its Potential ETF Approval!

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What to know:

  • The SEC may be engaging with a litecoin ETF filing, say Bloomberg ETF analysts.
  • If that’s so, they predict Litecoin is the most likely cryptocurrency to next get its own ETF.
  • The incoming SEC leadership may shift the situation, however.

As U.S. President-elect Donald Trump prepares for his inauguration in just four days, and a new team takes over at the Securities and Exchange Commission (SEC), there’s a strong possibility that more cryptocurrencies could soon gain recognition alongside bitcoin (BTC) and ether (ETH). These might even secure their own exchange-traded funds (ETFs).

According to Eric Balchunas and James Seyffart, two analysts from Bloomberg Intelligence, Litecoin (LTC) is most likely to be approved first among the candidates they’re considering.

Just now, Canary Funds have updated their application for a Litecoin ETF with the Securities and Exchange Commission (SEC). This adjustment could signal that the SEC is taking a closer look at the filing, although it’s important to note that there are no guarantees.” (posted by Seyffart on X)

Balchunas wrote that there were rumors about the SEC’s response to Litecoin’s S-1 filing. He further stated that the revised filing suggests a positive outlook on our prediction that Litecoin might be the next cryptocurrency to gain approval from the SEC.

As a crypto investor, I’ve been considering diversifying my portfolio, and one question that keeps popping up is why choose Litecoin? With a market cap of approximately $8.8 billion, Litecoin ranks as the 11th largest cryptocurrency within the CoinDesk 20, a list excluding stablecoins, memecoins, and exchange coins. When looking at the broader crypto market, it stands as the 24th biggest coin. This relatively lower position in these rankings makes me wonder about its potential for growth and why it’s worth my attention.

Litecoin shares similar fundamental principles with Bitcoin because it’s a fork of the original cryptocurrency. This means both use the same basic rules in their protocol. For instance, they employ Proof-of-Work consensus mechanism. Notably, unlike larger cryptocurrencies like Solana (SOL) and Ripple (XRP), Litecoin has not been classified as a security by the SEC.

Balchunas predicted in December that there will be an influx of cryptocurrency ETFs next year, but not all at once. The initial wave may consist of ETFs focusing on bitcoin and ether, followed by litecoin due to its relationship with bitcoin as a commodity. Afterwards, HBAR might be next because it’s not considered a security. Lastly, the ETFs for XRP and Solana could follow suit as they have been labeled securities in ongoing legal cases.

Despite the Securary and Exchange Commission (SEC) under Paul Atkins potentially handling the crypto industry differently than it did under Gary Gensler, as pointed out by Balchunas, this could be a significant shift. Noteworthy, Canary Funds – who submitted an S-1 filing for a Litecoin ETF in October – has not yet filed a 19b-4, indicating that the SEC has yet to establish a deadline for approving or denying the product.

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2025-01-16 18:28