Litecoin ETF Approval Odds Surge as Key Listing Boosts Optimism

Canary Capital’s proposed Litecoin ETF has taken a step forward, with its listing on the Depository Trust and Clearing Corporation (DTCC) significantly boosting expectations for approval.

Polymarket now places the odds at 85%, reflecting a sharp increase in optimism.

The DTCC listing, under the ticker LTCC, signals preparations for potential trading, though it does not guarantee regulatory approval.

The Litecoin Foundation acknowledged this as a key milestone but emphasized that the final decision lies with the U.S. Securities and Exchange Commission (SEC). Analysts have echoed this caution, noting that while the listing is a technical step forward, it does not confirm readiness for trading.

Canary Capital initially filed for a Litecoin ETF in late 2024, joining a wave of firms aiming to launch similar products.

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The SEC formally acknowledged the application weeks ago, opening it for public review. Meanwhile, institutions like Grayscale and CoinShares are also pursuing Litecoin-based funds, and Nasdaq has filed proposals to list such products.

Some analysts believe Litecoin’s close ties to Bitcoin and its classification as a commodity could strengthen its case for approval. However, regulatory uncertainty remains, as the SEC’s approval process is known for its strict investor protection measures.

While the Polymarket odds reflect growing confidence, the SEC’s final verdict will determine whether Litecoin ETFs become a reality.

Alexander Stefanov