Litecoin Sees Surge in Market Cap Amid ETF Speculation
Litecoin has experienced a significant increase in market value, driven by rising investor interest and speculation surrounding a potential exchange-traded fund (ETF). From Feb. 2 to Feb. 19, the cryptocurrency’s market cap surged by 46%, reflecting heightened enthusiasm in the market. The growth comes as Litecoin’s network utility strengthens, processing $9.6 billion in daily transactions over the past week. This uptick in activity coincides with rumors of a Litecoin ETF, which could allow mainstream investors to gain exposure to the cryptocurrency without purchasing the digital asset directly. CoinShares Files for Litecoin ETF Amid SEC Review Interest in Litecoin intensified after CoinShares, a financial firm, filed to list a Litecoin ETF on Nasdaq. The U.S. Securities and Exchange Commission (SEC) has begun its review process, marking a critical step toward potential approval. If approved, this would be the first Litecoin ETF on a U.S. exchange, following the path of Bitcoin ETFs, which received regulatory approval 13 months ago. Analysts estimate a 90% chance of approval by the end of 2025, highlighting growing optimism within the investment community. The ETF would enable investors to trade Litecoin on a regulated stock market platform, bypassing the need to store the actual cryptocurrency. This could significantly lower the entry barrier for traditional investors, potentially boosting Litecoin’s market adoption. Supportive Regulatory Climate May pave the way for More Crypto ETFs The likelihood of approval is bolstered by a more crypto-friendly U.S. administration, which could pave the way for ETFs based on other prominent altcoins such as XRP and Solana. The introduction of more cryptocurrency ETFs would provide a regulated avenue for institutional and retail investors to diversify their portfolios, further legitimizing the digital asset space. Market analysts suggest that the success of a Litecoin ETF could trigger a wave of similar products, increasing mainstream exposure to cryptocurrencies. As regulatory scrutiny continues, the crypto community is closely monitoring the SEC’s decision, which could set a precedent for future cryptocurrency investment vehicles. With speculation mounting and investor interest growing, Litecoin’s market performance will likely be closely watched in the coming months as the SEC’s review unfolds.
Nasdaq Files to List CoinShares XRP and Litecoin ETFs Amid Growing U.S. Crypto Push
Nasdaq has officially submitted 19b-4 filings to the U.S. Securities and Exchange Commission (SEC) to list and trade two cryptocurrency exchange-traded funds (ETFs) from CoinShares, a European digital asset investment firm. The proposed funds, the CoinShares XRP ETF and CoinShares Litecoin ETF aim to provide investors with exposure to XRP and Litecoin, two established digital currencies. The filings mark CoinShares’ latest effort to expand into the U.S. market, following its S-1 submissions to the SEC last month for the same spot crypto ETFs. The move aligns with a broader trend of institutional players seeking regulatory approval for cryptocurrency investment products. Litecoin ETF Positioned for Early Approval Among the proposed funds, the Litecoin ETF appears closest to regulatory approval. Bloomberg ETF analyst Eric Balchunas suggested that Litecoin could become the first altcoin ETF to receive SEC approval under the new administration. Unlike other cryptocurrencies, Litecoin has largely avoided regulatory disputes with the SEC. The Commodity Futures Trading Commission (CFTC) previously classified Litecoin as a commodity in its case against KuCoin, potentially giving it an advantage in the approval process. Crypto ETF Market Gains Momentum CoinShares is not the only firm seeking approval for crypto ETFs. Several major U.S. asset managers, including WisdomTree, Bitwise, 21Shares, and Canary, have filed applications to launch spot XRP ETFs, with Cboe recently submitting four related 19b-4 filings to the SEC. Polymarket betting odds currently place the likelihood of Litecoin ETF approval in December 2025 at over 80%, reflecting strong market expectations. If approved, the ETFs could mark a significant step in the evolution of cryptocurrency investment products in the United States.The SEC’s decisions on these filings will be closely watched, as they may signal a shift in regulatory attitudes toward crypto-based investment vehicles under the new administration.
