Will Litecoin ETF be Approved Soon by SEC This Year?

Bittime - Interest in Litecoin (LTC) continues to increase, especially with the potential presence of a Litecoin ETF. 

As one of the digital assets that has a clean reputation compared to some of its competitors such as XRP and Solana, will a Litecoin ETF be approved by the SEC soon? Read this article to find out more!

Litecoin ETF: A Strong Candidate for the Next ETF

Litecoin became a concern after Bloomberg ETF expert, James Seyffart, said that the SEC had provided feedback on the S-1 documents filed for the Litecoin ETF. 

The S-1 document is the main requirement that must be met before an ETF can be approved. Litecoin also has a great chance of being the next coin to have an ETF, especially since there is no legal drama accompanying this coin.

Read Also: Litecoin ETF Has Been Proposed By Canary Capital, Here's The Latest Update

SEC Decision Deadline for Litecoin ETF

Currently, Canary Capital is the only company to propose a spot-based Litecoin ETF. 

Under the regulations, the SEC has up to 240 days to render a final decision after receiving the application. This means that a decision on whether a Litecoin ETF will be approved or not could be announced as early as June 2025.

However, with recent amendments to the application, it remains unclear whether this deadline will be extended.  

Terms and Conditions for Litecoin ETF Launch

The launch of the Litecoin ETF is contingent on meeting a number of requirements set by the SEC, including:

1. Sufficient Liquidity: Litecoin should have enough liquidity to support an ETF.

2. Investor Security: ETFs must have a secure custodial solution to protect investors' assets.

3. Transparency: Regular updates on ETF holdings and performance are necessary.

4. Regulatory Compliance: ETFs must comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

5. Market Partnerships: ETFs require cooperation with authorized market participants to ensure market liquidity and stability.

With Litecoin's relatively clean track record, compared to XRP and Solana, the chances of a Litecoin ETF being approved look bigger and more promising.

Read Also: Litecoin ETF (LTC): Latest LTC Exchange Traded Funds Development News

Litecoin FAQs

What is Litecoin?

Litecoin is a crypto asset designed to provide fast transactions with low fees. Created in 2011 by Charlie Lee, Litecoin is often considered a "light version" of Bitcoin due to its technological similarities.

What Are the Main Uses of Litecoin?

Litecoin is used for fast peer-to-peer transactions and low fees. Apart from that, Litecoin is also often used as a means of payment at merchants that accept cryptocurrency and as an investment asset.

How is Litecoin Different from Bitcoin?

Litecoin has faster transaction times (2.5 minutes per block) than Bitcoin (10 minutes per block). Additionally, Litecoin uses the Scrypt hashing algorithm, while Bitcoin uses SHA-256.  

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Reference

CCN, Litecoin Spot ETF Timing: Will the SEC Approve an LTC Fund?, accessed January 21, 2025.

Author: IPR