The Depository Trust and Clearing Corporation (DTCC) has listed Canary Capital’s spot Litecoin ETF (LTCC), a move that signals strong prospects for the eventual approval of the first Litecoin exchange-traded fund (ETF).
Litecoin (LTC) price rose early Friday, Feb. 21 as traders reacted to the news.
Notably, Litecoin’s price climbed from a low of $125 to an intraday high of $139.
Could LTC be gearing up for a breakout amid the spot ETF buzz? The cryptocurrency’s all-time high stands at $412, reached on May 10, 2021.
Canary’s Litecoin ETF added to the DTCC system
Part of the excitement around Litecoin in recent days has been down to projections that the altcoin has a very high chance of seeing multiple ETF applications get a nod from the US Securities and Exchange Commission.
DTCC, a major player in the financial markets and key to the early steps towards institutional preparedness for possible funds’ launch, has added to this excitement. The entity listed the Canary Capital spot Litecoin ETF, under the ticker LTCC, in its system.
“Canary Funds’ Litecoin ETF has been listed on the Depository Trust and Clearing Corporation system under the ticker LTCC! The DTCC is key part of global financial markets and processes trillions of dollars in securities transactions each day,” Litecoin Foundation, the non-profit organization helping with LTC adoption posted on X.
DTCC’s traction in global financial trading includes serving as the main clearing and custody provider for US securities trading.
While the listing does not equate to approval, it suggests institutions might be gearing up for that possibility.
The CFTC has classified Litecoin as a commodity, similar to Bitcoin, and experts see an ETF nod as highly probable.
Bloomberg senior ETFs analyst Eric Balchunas shared this sentiment on X.
He noted that DTCC listing doesn’t mean LTCC is “ready to start trading.”
However, it points to the fact that the issuer is getting ready for this eventuality. Balchunas says the odds of approval remain at 90%.
The main play, though, is with the SEC, which has so far acknowledged spot LTC ETF applications from multiple issuers.
What next for Litecoin ETF?
Following the S-1 filing, which gives a registration statement, the issuers file 19b-4.
These related to proposed rule changes, asking for approval to have the ETFs listed and traded on securities exchanges. NYSE Arca, Cboe, and Nasdaq are such exchanges.
Canary Capital submitted its S-1 for a spot in Litecoin ETF in October 2024. Grayscale and CoinShares have also filed applications, with the SEC acknowledging forms 19b-4 for the issuers to set a timeline of approval or rejection into motion.
Should the SEC approve a Litecoin spot ETF, it would join Bitcoin and Ethereum, whose spot ETFs rolled out in 2024.
The post Litecoin ETF goes live on DTCC: is a breakout in sight for LTC? appeared first on Invezz
