Exciting Development in the Crypto Market: Nasdaq Files for Litecoin ETF Approval
The cryptocurrency market is abuzz with the recent news of Nasdaq filing a 19b-4 Form on Jan.16 to list and trade the spot Litecoin (LTC) exchange-traded fund (ETF) registered by Canary Capital. This move has garnered significant attention from industry experts, with Bloomberg senior ETF analyst Eric Balchunas predicting this to be the first altcoin-related ETF approval in 2025.
Expert Insights on the Litecoin ETF Approval
According to Eric Balchunas:
“I don’t see any reason why this would be withdrawn either given SEC gave comments on the S-1, Litecoin is seen as commodity and there’s new SEC sheriff in town.”
Further developments in the S-1 Form filed by Canary have reinforced the positive outlook for the Litecoin ETF. Bloomberg analyst James Seyffart highlighted that while the amendment on the S-1 Form does not guarantee approval, it indicates active engagement from the US Securities and Exchange Commission (SEC) on the matter.
Potential Approval Timeline and Market Impact
Following the Nasdaq filing news, Seyffart suggested that it might take a few weeks to confirm the approval odds, as the SEC is yet to officially acknowledge the Litecoin ETF application. He noted that while recent Solana (SOL) filings faced delays, a Litecoin ETF is more likely to capture the regulator’s attention. This is due to the fact that LTC is not under the SEC’s scrutiny as a security, giving it a better chance of approval.
Amidst these developments, Litecoin’s price surged by nearly 24% in the past 24 hours, reaching $129.49 at press time. This significant uptick marks the largest daily gain among the top 25 cryptocurrencies by market cap.
Anticipated Wave of ETF Approvals in 2025
Industry experts such as Seyffart and Balchunas are optimistic about a wave of ETF approvals hitting the market in 2025. The most probable candidates for SEC approval are mixed ETFs that track Bitcoin (BTC) and Ethereum (ETH).
In 2024, the regulator approved Hashdex and Franklin Templeton filings, setting the stage for upcoming approvals. Litecoin and Hedera (HBAR) ETFs are next in line, aligning with analysts’ predictions.
While XRP and SOL ETFs are also in the pipeline, potential delays may occur due to ongoing SEC lawsuits categorizing these cryptos as securities. Nonetheless, reports suggest that President-elect Donald Trump is considering incorporating XRP, SOL, and USD Coin (USDC) into the US National Reserve. This move could improve the approval odds for spot XRP and SOL ETFs.
Key Takeaways
- Nasdaq filed a 19b-4 Form for the Litecoin ETF approval, signaling a significant development in the crypto market.
- Experts predict a wave of ETF approvals in 2025, with Bitcoin and Ethereum ETFs leading the way.
- Litecoin’s price surged by 24% following the news, showcasing market optimism towards the ETF approval.
- Regulatory engagement with the Litecoin ETF application indicates a positive outlook for its approval.