Canary Capital’s proposed spot Litecoin exchange-traded fund has officially been added to the Depository Trust and Clearing Corporation (DTCC) under the ticker LTCC. The DTCC officially displayed the listing on its website on February 20. Including the spot Litecoin ETF in DTCC is a key step toward its possible launch. Litecoin ETF is expected to be the first to receive SEC approval among similar applications spotted by Canary Capitals.
Canary Capital’s Spot Litecoin ETF on DTCC Website, A Step Closer to SEC Approval!
Canary Capital’s Spot Litecoin ETF was displayed under the LTCC ticker on the official website of DTCC on February 20. DTCC plays a major role as the clearance and custody service provider for US securities transactions. The DTCC listing is an initial step in the preparation process and does not guarantee the launch of the Exchange Traded Fund (ETF). The proposal for the Litecoin ETFs is still in consideration and pending regulatory approval from the U.S. Securities and Exchange Commission (SEC). The DTCC stated that the file includes both active ETFs that may be processed at DTCC and ETFs that are not yet active (pre-launch) and, therefore, are not able to be processed at DTCC unless and until such securities have received all necessary regulatory and other approvals.
Canary Capital filed this Litecoin ETF in October last year before similar applications from CoinShares and Grayscale. This could be the first U.S. spot ETF for a cryptocurrency after Bitcoin and Ethereum, and more over this could potentially lead the path to additional altcoin-based exchange-traded funds. The SEC approval is pending and the commission is currently reviewing the application. SEC opened a suggestion for public comments on February 4, the proposal will be active for 90 days. Eric Balchunas, the Senior ETF Analyst of Bloomberg, stated that it didn’t mean it was approved or ready to start trading, but it did show that the issuer was making preparations for when it was. He added that they were still at 90% odds.
The Litecoin Foundation officially tweeted this news through their official X account. The Litecoin Foundation tweeted that the Litecoin ETF had been listed on the Depository Trust and Clearing Corporation system under the ticker LTCC and added that the DTCC is a key part of global financial markets, processing trillions of dollars in securities transactions each day.
Litecoin ETF Approval Incite the Price Surge of LTC!
Litecoin’s price has shown an enhanced increment ever since the first Litecoin ETF filing was submitted to the Securities and Exchange Commission (SEC). The price of LTC reportedly soared over 100%. According to the latest data, LTC is currently trading at $133.20 showing a 3.23% increase from the previous day. The latest data indicates that Litecoin managed to outrun several major cryptocurrencies by showing a 46% increase in its market capitalization between the time period of February 2 and February 19. LTC also recorded a daily transaction volume of $9.6 billion during these days. The positive momentum of LTC could result in a significant price surge in the upcoming days. The cryptocurrency managed to gain over 7% this week and up to 18% increase over the past seven days.
The recent administrative changes and regulatory changes implemented under the reign of Donald Trump have led to a significant increase in ETF applications in the cryptocurrency landscape. The pro-crypto attitude of Donald Trump and the administration’s positive inclination towards the crypto market has incited the price surge and the likelihood of new financial products receiving approval from the SEC. Blackrock’s Bitcoin ETF product IBIT appeared on the DTCC website in the early weeks of August 2023 and it had to wait until January 2024 to get the approval from the SEC. However the DTCC approval does not directly imply any potential approval from the SEC, it is derived from the early possibility of possible approval.
