Litecoin ($LTC) is making headlines as its market capitalization surged by 46% from February 2 to February 19, 2025, fueled by growing speculation about a potential Litecoin ETF.
While Litecoin has often remained under the radar compared to high-profile cryptocurrencies like XRP, Solana, Chainlink, and Cardano, recent developments have sparked renewed investor interest, Santiment reported.
Litecoin ETF Gains Momentum
The primary driver behind Litecoin’s recent rally is CoinShares’ official filing for a spot Litecoin ETF on Nasdaq, which has now entered the SEC review process.
If approved, this ETF would allow traditional investors to gain exposure to Litecoin without needing to purchase or store the actual tokens, making it more accessible to mainstream markets.
The anticipation around the ETF comes 13 months after the SEC approved the first spot Bitcoin ETFs, which led to a major surge in BTC adoption among institutional investors.
Analysts believe the chances of Litecoin’s ETF approval are high, with some estimates placing the probability at 90% by the end of 2025.
Adding to the momentum, another Litecoin ETF, Canary Capital’s Litecoin ETF (LTCC), was recently spotted on the Depository Trust and Clearing Corporation (DTCC) system on February 20.
The DTCC plays a critical role in global financial markets, handling trillions of dollars in transactions daily. The Litecoin Foundation noted that the DTCC listing represents a significant preparatory step toward the fund’s potential launch.
Strong Network Activity Boosts Confidence
Beyond ETF speculation, Litecoin’s fundamentals have strengthened significantly in recent weeks. According to Santiment, the network has been processing $9.6 billion in daily transaction volume over the past seven days, signalling increased usage and adoption.
This rise in network utility reinforces investor confidence, making Litecoin more appealing amid broader market fluctuations.
Potential Ripple Effect on Altcoin ETFs
The growing acceptance of crypto ETFs aligns with a new U.S. government stance that appears more supportive of digital assets. If the SEC greenlights the Litecoin ETF, it could set a precedent for additional altcoin ETFs, including those for XRP and Solana, which have also been discussed in regulatory circles.
Such approvals would provide institutional investors with a safer and more convenient way to enter the crypto space.
Litecoin’s Price Actions
At the time of writing, Litecoin is trading at $135.12, marking a 4.64% increase in the last 24 hours. The global market cap stands at $10.2 billion, while 24-hour trading volume has surged by 21.86%, reflecting heightened trading activity.
Litecoin’s resurgence in both market value and transaction activity underscores the growing interest in the asset, particularly as ETF approval speculation heats up. If CoinShares’ ETF gets the green light, it could unlock new investment inflows, potentially driving Litecoin’s price higher.
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