Litecoin ETF on the horizon? Analyst believes US approval is imminent

News about cryptocurrency exchange-traded funds (ETFs) keeps coming in, and it looks like Litecoin could be next in line in the United States. Recently, there’s been a surge in interest in Bitcoin and Ethereum ETFs, with several asset managers seeking approval for their products. Now, attention is turning to Litecoin, with a Bloomberg analyst predicting a possible approval soon. Amid this dynamic landscape, the market is eagerly awaiting more regulatory clarity and new investment options for digital assets.

According to Bloomberg senior ETF analyst Eric Balchunas, a Litecoin spot ETF is likely to be the next spot cryptocurrency product to get the green light in the U.S. The analyst’s statement comes shortly after Canary Capital filed an amended S-1 form for its Litecoin ETF with the Securities and Exchange Commission (SEC) on Jan. 15.

In a post on X Platform, Balchunas shared that Litecoin’s S-1 has potentially received some comments from the SEC. This interaction between the SEC and Canary Capital suggests that the process approval is moving forward and that the SEC is actively reviewing the Litecoin ETF proposal.

However, Balchunas also pointed out a crucial factor that could influence the outcome: the appointment of a new SEC chairman following Gary Gensler’s departure, which is expected to take place on January 20. The change in SEC leadership could bring new perspectives and approaches to cryptocurrency regulation, which could directly impact ETF approvals.

“We’ve heard rumors that Litecoin’s S-1 has received comments from the SEC. This seems to confirm what bodes well for our prediction that Litecoin will likely be the next approved currency. That said, the new SEC chair hasn’t started yet and that’s a huge variable,” stated or specialist.

The potential approval of a Litecoin ETF would be a major milestone for the cryptocurrency market, offering investors a more accessible and regulated way to invest in the asset. At the time of publication, Litecoin’s price was trading at $119,66, up 15.4% in the past 24 hours.