“The Next Big Crypto ETF Could Be Litecoin: Here’s Why”

With U.S. President-elect Donald Trump’s inauguration just days away, and anticipation mounting for the regulatory shifts his administration could bring, the possibility of additional cryptocurrencies receiving their own exchange-traded funds (ETFs) is becoming a reality. Litecoin (LTC) is emerging as a top contender for approval, with new filings and regulatory developments paving the way for this digital asset to potentially join Bitcoin (BTC) and Ethereum (ETH) in the world of ETFs.

The latest filing from Canary Funds for a Litecoin ETF has sparked interest in the crypto space, as it was amended recently, signaling possible engagement with the U.S. Securities and Exchange Commission (SEC). According to Bloomberg analysts Eric Balchunas and James Seyffart, the amendment may indicate that the SEC is seriously considering the Litecoin ETF proposal.

In addition to the filing, Nasdaq’s submission of a 19b-4 form for the Litecoin ETF has moved the process forward, creating a deadline for the SEC to make a decision within the year. The response from the SEC could be pivotal in shaping the future of crypto ETFs. Litecoin’s price has already seen an uptick, with the asset rising by 18% in the past 24 hours, suggesting that the market is reacting positively to these developments.

Litecoin, currently ranked as the 11th largest cryptocurrency by market capitalization, has proven to be resilient due to its origins as a Bitcoin fork, meaning it shares many of Bitcoin’s core features, including the Proof-of-Work consensus mechanism. Unlike some other cryptos that face regulatory hurdles, Litecoin has not been designated as a security by the SEC, giving it a better chance of approval for an ETF.

Industry experts predict that the approval of a Litecoin ETF could mark the beginning of a wider acceptance of cryptocurrency ETFs, with more crypto assets likely to follow suit. With Trump’s pro-business stance and the SEC’s evolving approach to digital assets, Litecoin stands a strong chance of becoming one of the first altcoins to enter the ETF market, opening the door for more mainstream adoption of digital assets.