Litecoin price jumps by double digits as ETF valuation rises

of The value of Litecoin It has risen by double digits in the past 24 hours, to reach a four-week high of $118, fueling optimism that the Litecoin-based exchange-traded fund may be approved.

At the time of publication, Litecoin is trading at around $117, up 15.1% on the day, according to data from CoinGecko.

Litecoin's rise follows Canary Capital's amendment to its S-1 filing with the US Securities and Exchange Commission (SEC) on January 15, a move analysts interpret as a major step toward regulatory engagement.

Such updates often indicate that feedback has been received from reviewers, and changes made may provide an indication of the status of the review.

If the SEC gives the green light to Canary's ETF proposal, Litecoin will join Bitcoin And Ethereum As the only cryptocurrencies with spot ETFs approved in the US.

The filing prompted comments from Bloomberg ETF analysts Eric Balchunas and James Seifert. Next crypto approved for spot ETF.

On Wednesday, Balchunas warned that the SEC's upcoming leadership transition, with Paul Atkins replacing Gary Gensler as the agency's chairman, would introduce a “huge dynamic” in the regulatory outlook.

Seyffart explained that when the filing indicates “engagement” from the SEC, a 19b-4 filing—a regulatory filing that normally starts the clock for approval or rejection—is required to advance the process.

Canary Capital's reforms are focused on its agreements with crypto custodians Coinbase and BitGo, which look at custodial arrangements to meet SEC requirements.

The filing includes updates related to accounting, marketing, legal and tax provisions, ensuring compliance with regulatory requirements with the SEC.

Analysts believe these revisions will speed up the SEC's review process.

Blockchain analytics firm Sentiment reported an increase in activity among large Litecoin holders, with “whales” and “sharks” hoarding 250,000 LTC worth an estimated $29 million as of January 9.

Despite the rally, Litecoin remains 72% below its May 2021 all-time high of $410, leaving room for growth if regulatory approval is granted.

The race among altcoins to secure the next U.S. spot is heating up, with companies including Bitwise and VanEck filing 19b-4 forms for Solana ETF—giving them the go-ahead.

Analysts at JPMorgan predict higher returns for approved crypto ETFs in anticipation of that. Solana And XRP ETFs could collectively attract $14 billion in their first year.

The market is closely watching the transition in SEC leadership as Paul Atkins takes over as chairman.

Known for his crypto-friendly stance, the community expects Atkins to create a more favorable environment for crypto ETF approvals.