Nasdaq’s Litecoin ETF Near Approval as New SEC Leadership Takes Shape

Following Bitcoin and Ethereum spot ETFs in 2024, the race is on for Trump’s new crypto-friendly administration to approve the next wave of ETFs. Will it be Litecoin or Ripple’s XRP?

Nasdaq took a major step this week toward launching the first Litecoin-focused exchange-traded fund (ETF) in 2025 by submitting a 19b-4 form to the U.S. Securities and Exchange Commission (SEC).

The proposed Canary Litecoin ETF aims to build on the success of Bitcoin and Ethereum ETFs approved last year, potentially adding another commodity-backed product to the growing roster of crypto investment vehicles.

Canary Capital’s amended S-1 filing preceded Nasdaq’s submission, and the SEC has reportedly provided detailed feedback—an indicator that regulators are actively engaging with the proposal. Similarly, Bitwise has filed for an XRP ETF that looks likely to be approved in early 2025.

Analysts’ View on Litecoin ETFs

Analysts say this mirrors the agency’s prior reviews of Bitcoin and Ethereum ETFs, which ultimately led to their approvals. Litecoin’s status as a commodity rather than a security could streamline the path to authorization and distinguish it from cryptocurrencies facing ongoing regulatory scrutiny.

There is also a changing of the guard underway at the SEC. Paul Atkins, a former commissioner known for a comparatively favorable stance on digital assets, is expected to become the new chair under the incoming Trump administration. He would replace Gary Gensler, whose tenure was marked by stricter oversight of crypto markets. Observers suggest this shift in leadership may increase the odds of a swift and positive decision for Litecoin’s ETF application.

Market Response to Approval News

In anticipation of an approval, Litecoin has seen a surge in both retail and institutional interest. Market data indicates that the coin’s price jumped by 18 percent over a 24-hour period, while large investors, or “whales,” reportedly added significant holdings to their portfolios. Litecoin’s market capitalization now stands at roughly $8.8 billion, and some analysts believe formal ETF status could further elevate its profile among traditional investors.

“Litecoin ETF now has all the boxes checked,” Eric Balchunas, a senior ETF analyst at Bloomberg, wrote on social media. “The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either, given the SEC gave comments on the S-1, Litecoin is seen as a commodity, and there’s a new SEC sheriff in town.”

Source: X

If the SEC ultimately grants approval, custodial services would be provided by Coinbase Custody Trust Company LLC, and U.S. Bancorp Fund Services, LLC, would handle administration. These arrangements highlight the framework in place to support the proposed fund.

Litecoin: The Digital Silver to Bitcoin’s Gold

Litecoin (LTC), created by Charlie Lee in 2011, is often referred to as the “silver” to Bitcoin’s “gold.” As one of the earliest cryptocurrencies, Litecoin was designed to complement Bitcoin, addressing some of its limitations while maintaining its core principles of decentralization and security. It offers faster transaction speeds and lower fees, making it ideal for smaller, everyday transactions.

Litecoin operates on a modified version of Bitcoin’s source code, utilizing the Scrypt hashing algorithm instead of Bitcoin’s SHA-256. This decision made mining more accessible to average users during its early years, promoting decentralization. Litecoin’s block time is just 2.5 minutes compared to Bitcoin’s 10 minutes, allowing for quicker confirmations.

Over the years, Litecoin has implemented several innovations, such as Segregated Witness (SegWit) and the Lightning Network, which enhance scalability and interoperability. Its recent MimbleWimble extension blocks add privacy features, appealing to users seeking confidential transactions.

Though its market presence is smaller compared to Bitcoin or Ethereum, Litecoin remains a reliable and widely adopted cryptocurrency, consistently ranking in the top assets by market cap. Its longevity and robust development make it a staple in the crypto ecosystem, ideal for those seeking a fast, cost-effective digital currency.

While no definitive timeline for final approval has been announced, many market watchers consider Litecoin a strong candidate for becoming the next major cryptocurrency to secure an ETF listing in the United States. That means Litecoin price predictions are heating up, and Litecoin could soon benefit from the Trump Pump crypto bull run.