Is Now the Time to Buy LTC? Litecoin ETF Approval Odds Hit 90%

• Canary Capital’s proposal for a Litecoin ETF appears to be gaining traction, with analysts predicting that an SEC approval could be as early as this week.
• This follows closely after the SEC recently postponed its decision on multiple other ETF requests, such as Franklin Templeton’s and Bitwise’s.

On October 15, 2024, Canary Capital, a firm known for institutional crypto trading and asset management, filed to launch an Exchange Traded Fund (ETF) linked to Litecoin (LTC). Fast forward to today, and the wait is almost over. The U.S. Securities and Exchange Commission (SEC) is expected to make its final call, and the crypto world is watching closely.

Bloomberg ETF strategist James Seyffart weighed in on X, stating, “If any asset has a chance of early approval, it’s Litecoin IMO. Personally think a delay is more likely but definitely something to watch.” His sentiment echoes growing optimism across the market, especially with Litecoin standing out with an estimated 90% chance of approval, while those for Ripple (XRP) ETFs stand at 85%.

The road to the Litecoin ETF took a step further on January 16, when the proposal was submitted through Nasdaq’s 19b-4 process. The process enables exchanges to propose rule changes necessary for listing new financial products. The SEC subsequently officially recognized the filing on January 29, thereby initiating the clock for the regulatory review process.

While Canary’s Litecoin ETF is currently in the spotlight, it’s far from the only player on the field. Grayscale, another big name in the crypto investment space, also submitted a proposal for a Litecoin ETF to the SEC. Canary itself is not slowing down either; it has made other ETF filings tied to Tron (TRX), Sui, PENGU, Ripple (XRP), and Hedera (HBAR), demonstrating the firm’s aggressive expansion in the digital asset ETF space.

Fueling the rising optimism for Litecoin’s ETF is the SEC’s recent postponement of several competing crypto ETF applications. Last week, Crypto News Flash reported delays in decisions on high-profile filings such as the Franklin Templeton Ripple (XRP) ETF and Dogecoin (DOGE) ETFs from Bitwise, with new deadlines extended into June 2025.

Analysts indicate Litecoin’s regulatory history and technical standing position it in a stronger position to be approved. Compared to other altcoins like XRP or Solana, Litecoin is considered to have less legal ambiguity.

Can Litecoin Hit $500, or More?

Market sentiment has been distinctly bullish. Crypto analyst Crypto Patel recently noted that Litecoin confirmed a breakout above a multi-year resistance line, following a prolonged period in the “Best Accumulation Zone.” According to Patel, “Support Held: ~$65. Accumulation Zone: ~$85–$65. Short-Term Target: $255/$500. Long-Term Target: $1000/$1458+.”

Litecoin is currently trading at $87.94, marking a 1.79% increase over the past 24 hours and a weekly rise of 0.61%. Analysts predict that a Litecoin ETF would pull as much as $580 million in institutional flows if investor sentiment mirrors the reaction to Bitcoin ETF approvals. This kind of flow would not just justify Litecoin’s relevance but also give a push to its market capitalization and liquidity.