Litecoin ETF Approval Odds Surge to 85% After Canary Capital’s Listing on DTCC

Litecoin ETF (exchange-traded funds) approval odds on Polymarket hit 85% today, following Canary Capital’s proposed spot Litecoin ETF’s secure listing on the Depository Trust and Clearing Corporation (DTCC) system.

It marks a significant development in the US race for more altcoin ETF approvals. The first one, Ethereum ETF, was approved by the US SEC (Securities and Exchange Commission) in May 2024.

Canary Capital’s Litecoin ETF Listed on DTCC

Litecoin ETF approval odds on Polymarket are up 35% since Thursday, to 85% on Friday. It follows the listing of Canary Capital’s application on the DTCC system under the LTCC ticker.

“Canary Capital Litecoin ETF has been listed on the Depository Trust and Clearing Corporation system under the ticker LTCC! The DTCC is a key part of global financial markets and processes trillions of dollars in securities transactions each day,” the Litecoin Foundation shared on X (Twitter).

The Litecoin Foundation said this marks a key preparatory step for the fund’s potential launch. This development indicates progress in establishing the trading framework. Nevertheless, it does not guarantee approval from the US SEC, whose decision remains pending.

“Doesnt mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds,” wrote ETF analyst Eric Balchunas.

The recent listing on the DTCC comes just three weeks after the SEC formally acknowledged Canary Capital’s Litecoin ETF application. This procedural step opened the proposal to public commentary, signaling that the application met initial filing requirements.

Canary Capital initially filed its application for this Litecoin ETF in October 2024. The move positioned it among the pioneering proposals awaiting SEC evaluation for this financial instrument. This move aligns with a broader trend of asset managers, including Grayscale and CoinShares, seeking to introduce Litecoin-based financial products.

As BeInCrypto reported, Nasdaq recently filed 19b-4 forms with the US SEC to list and trade two ETPs from CoinShares, including a Litecoin ETF. These developments reflect a growing institutional interest in diversifying cryptocurrency investment options.

Meanwhile, analysts have expressed cautious optimism regarding the approval prospects of Litecoin ETFs. Some suggest that Litecoin’s status as a Bitcoin fork and its classification as a commodity may enhance its likelihood of receiving regulatory approval. This is compared to other cryptocurrency funds like XRP, whose legal battle with the SEC remains an impediment.

Although prediction markets like Polymarket observe a surge in approval odds for the Litecoin ETF, it remains only speculative. The SEC’s approval process is meticulous, aiming to ensure that any new financial products meet stringent standards for investor protection and market integrity.

As such, while the DTCC listing represents a forward step, the ultimate fate of Canary Capital’s spot Litecoin ETF hinges on SEC review and decision.

The impact of this news on the Litecoin price was muted, however. It has risen only 3.37% since Friday’s session opened. BeInCrypto data shows LTC was trading for $134.25 as of this writing.