Litecoin (LTC) experienced a significant price increase amid speculation that the U.S. Securities and Exchange Commission (SEC) might approve a spot Litecoin exchange-traded fund (ETF) proposed by Canary Capital. The digital asset rose over 4% to $89, reaching its highest level since March, according to CryptoSlate data.
This surge positions LTC as one of the top performers among the 25 largest digital assets by market capitalization over the past day. Market analysts attribute this renewed attention to optimism surrounding a regulatory decision expected today, May 5.
Bloomberg ETF analyst James Seyffart suggested that Litecoin has a better chance of early approval compared to other altcoin-based ETF proposals. Canary Capital submitted its initial S-1 registration for the Litecoin ETF in October 2024, with Nasdaq following up in January 2025. The final deadline for the SEC to make a decision is today.
If approved, the fund would allow investors to gain direct exposure to Litecoin without directly holding the token.
This article is based on our author's analysis of materials taken from the following resources: CryptoSlate.