YEREVAN (CoinChapter.com) — Approval odds for a Litecoin ETF on the prediction market Polymarket increased sharply to 85%. This rise happened after Canary Capital’s spot Litecoin ETF was listed on the Depository Trust and Clearing Corporation (DTCC) system. The odds jumped by 35% within 24 hours, indicating growing market confidence.
The United States is working to introduce more cryptocurrency ETFs. The US Securities and Exchange Commission (SEC) approved the first Ethereum ETF in May 2024.
Canary Capital’s Litecoin ETF Listed on DTCC
Canary Capital’s proposed Litecoin ETF appeared on the DTCC system under the ticker symbol LTCC. The Litecoin Foundation confirmed the listing on X, highlighting the importance of the DTCC. The DTCC plays a central role in global finance, handling trillions of dollars in securities each day.
However, the foundation also clarified that this listing does not mean the ETF is approved yet. It only shows that preparations are being made in case approval comes.
ETF analyst Eric Balchunas noted,
“Doesn’t mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds.”
SEC Acknowledges Canary Capital’s Litecoin ETF Application
This DTCC listing follows the SEC’s recent acknowledgment of Canary Capital‘s ETF application. The SEC acknowledged it three weeks ago, opening the proposal for public comments. This means the application met initial SEC filing requirements.
Canary Capital first applied for this Litecoin ETF in October 2024. It is one of several proposals awaiting the SEC’s decision. Other asset managers, such as Grayscale and CoinShares, have also applied to launch Litecoin-based products.
Recently, Nasdaq also filed 19b-4 forms with the SEC to list and trade two CoinShares ETPs, including a Litecoin ETF. This trend shows institutional interest in offering cryptocurrency investment options continues to grow.
Analysts Consider Litecoin ETF Approval Chances
Notably, Litecoin’s classification as a Bitcoin fork and commodity could influence its chances with regulators. This differs from cryptocurrencies like XRP, which face legal challenges from the SEC.
However, despite optimism, SEC approval remains uncertain. The SEC’s process is thorough, designed to ensure new financial products are safe and comply with strict rules protecting investors.
LTC Price Sees Limited Impact from ETF News
Moreover, despite the increased approval odds, the news had limited impact on Litecoin’s price. As shown in TradingView data, Litecoin (LTC/USD) traded at $138.21 at the time of reporting. The price fluctuated between $137.68 and $140.00, with a 0.41% increase. Trading volume reached 21.61K LTC.
