Following the U.S. presidential elections, a management shift occurs within the SEC department. This change raises expectations for the approval of ETFs for various cryptocurrencies, including Litecoin (LTC), in addition to Bitcoin (BTC) 
$75,163 and Ether (ETH).
Insights from Bloomberg Analysts
Eric Balchunas and James Seyffart from Bloomberg Intelligence evaluate the potential for Litecoin to be among the first cryptocurrencies to receive approval. Seyffart notes that Canary Funds has updated its Litecoin ETF application.
“Canary Funds interacted with the SEC through their new Litecoin ETF application,” Seyffart stated.
Litecoin, a fork of Bitcoin, follows similar foundational rules. This structure provides an advantage since the SEC has not previously classified Litecoin as a security.
Balchunas mentions that Litecoin’s approval could be the next significant event following Bitcoin and Ether ETFs.
Overview of Crypto ETFs
Balchunas expresses an expectation for an increase in cryptocurrency ETFs in the near future, starting with Bitcoin and Ether combination ETFs, followed by Litecoin. With a market value of approximately $8.8 billion, Litecoin ranks 11th in the CoinDesk 20 index. The SEC’s stance on Litecoin not being classified as a security could provide an advantage during the approval process.
Analysts believe that Litecoin’s approval may accelerate ETF transactions for other cryptocurrencies. However, the SEC’s final decision may not come as quickly as expected due to the substantial number of applications requiring review. Additionally, considering necessary actions related to cryptocurrency litigation, the process may take time.
The approval of cryptocurrency ETFs can provide greater liquidity and investment opportunities in the market. Progress in Litecoin’s application could signal positive news for other altcoins. By staying informed, investors can make more educated decisions in response to these developments.
