Spot Litecoin ETF: The First Altcoin Approval on the Horizon as Nasdaq Takes Action

Analysts Predict Litecoin ETF Approval

Eric Balchunas, a senior ETF analyst at Bloomberg, has predicted that the spot Litecoin ETFs will likely be the first altcoin-related approval this year, hinting at a potential wave of approvals to follow.

On January 16, Nasdaq filed a 19b-4 Form to list and trade the spot Litecoin (LTC) ETF, registered by Canary Capital. Balchunas stated that the Litecoin ETF “has all the boxes checked,” suggesting a high likelihood of approval.

“I don’t see any reason why this would be withdrawn either, given the SEC gave comments on the S-1.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,” Balchunas noted.

SEC Engagement

Earlier on the same day, fellow Bloomberg analyst James Seyffart highlighted that the amendment on the S-1 Form does not guarantee approval but indicates that the SEC is engaging with the application. Seyffart mentioned that it could take a few weeks to confirm the approval odds as the SEC reviews the Litecoin ETF application.

Seyffart pointed out that while previous filings for Solana (SOL) were not acknowledged, the Litecoin ETF might attract the SEC's attention due to its classification as a commodity, which enhances its chances of approval.

Litecoin's Price Surge

Following the Nasdaq filing news, Litecoin's price surged by nearly 24% within 24 hours, reaching $129.49, marking the largest daily gain among the top 25 cryptocurrencies by market cap.

A Wave of Approvals Ahead

Both Seyffart and Balchunas anticipate a wave of ETF approvals in 2025, with the most likely candidates being mixed ETFs that track Bitcoin (BTC) and Ethereum (ETH). These products received initial approvals in 2024, paving the way for Litecoin and Hedera (HBAR).

Funds related to XRP and SOL are also in the pipeline, although analysts predict potential delays due to ongoing SEC lawsuits concerning their security status.

In a surprising twist, President-elect Donald Trump is reportedly considering the inclusion of XRP, SOL, and USD Coin (USDC) in the US National Reserve, which could positively influence the approval odds for spot XRP and SOL ETFs.