Canary Capital Litecoin ETF Filing Sparks Speculation Amid $10B On-Chain Volume Surge

• Canary Capital’s proposed Litecoin ETF filing could begin trading soon, analysts speculate.
• Speculative interest in Litecoin has surged, with nearly $10 billion in on-chain volume.

Canary Capital’s proposed Litecoin (LTC) ETF has gained momentum with its listing on the Depository Trust and Clearing Corporation (DTCC). Analysts are optimistic, predicting that the ETF could enter trading soon following this pre-approval step.

LTC ETF Speculation Heating Up

Bloomberg’s ETF analyst, Eric Balchunas, maintains high approval odds at 90%. However, he underscores that the DTCC listing indicates preparation for the ETF launch rather than a definitive approval.

Nate Geraci of ETF Store also supports this prediction. Drawing parallels with the historical Bitcoin ETF approval process, he comments:

“Litecoin ETF ‘listed’ on DTCC. Having flashbacks to spot BTC ETFs… This doesn’t mean anything, but I also think highly likely that LTC ETF is coming to a brokerage near you.”

The Canary LTC ETF 194-b filing was submitted to the Federal Register on February 4th. The Securities and Exchange Commission (SEC) could decide on the filing within 45 to 90 days, potentially making a decision in late March or early May.

Competitors in the Race

It’s worth noting that Grayscale and CoinShares have also submitted similar applications for Litecoin ETFs, and these have been recognized by the regulator.

Impact on Litecoin’s Market

Speculation about the ETF has significantly impacted Litecoin’s market dynamics. According to Santiment, Litecoin’s market cap surged by 46% over the past week while daily trading volume skyrocketed to nearly $10 billion.

“Part of this growth comes from its strong rise in network utility, processing $9.6 billion in daily transaction volume over the past seven days.”

Speculative trends in the Futures market have also been observed, with Litecoin’s Open Interest (OI) reaching $869 million. During the 2021 peak, OI reached $1 billion, indicating that current interest is close to those heights.

Price Performance

Litecoin has been one of the few altcoins to maintain gains since November, with a 37% increase in February alone. At press time, Litecoin was valued at $134.