Litecoin (LTC-USD) has rallied 8% in the past 24 hours amid talks of it potentially becoming the next cryptocurrency to secure a coveted spot ETF. Recent developments suggest possible progress at the U.S. Securities and Exchange Commission (SEC). Bloomberg ETF analysts Eric Balchunas and James Seyffart noted that Canary Funds recently amended their Litecoin ETF filing, signaling potential engagement from the SEC. According to Seyffart, this move “might be indicative of SEC engagement.” This offers hope for those bullish on Litecoin.
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Litecoin Holds a Unique Position in Its Favor
Unlike other cryptocurrencies, Litecoin boasts similarities to Bitcoin, including its Proof-of-Work mechanism, which makes it easier to categorize as a commodity rather than a security. This critical distinction gives it an edge over rivals like Solana (SOL-USD) and XRP (XRP-USD), which are embroiled in SEC scrutiny. With a market capitalization of $8.8 billion, Litecoin isn’t the largest crypto but remains a strong candidate for regulatory approval.
Trump’s Leadership May Change the Game
With President-elect Donald Trump’s inauguration days away, SEC leadership will transition to Paul Atkins, known for his crypto-friendly stance. Analysts predict Atkins could steer the commission toward a more favorable outlook on digital assets. Balchunas suggested this change is a “huge variable” that could open doors for a wave of cryptocurrency ETFs in 2025.
At the time of writing, LTC is sitting at $126.54.