Canary Capital’s Litecoin ETF Listed on DTCC – Is Trading Launch Imminent?
Canary Capital’s proposed ETF for Litecoin (LTC) has been officially registered with the Depository Trust and Clearing Corporation (DTCC), leading to speculation among experts that trading for the product could commence soon.
ETF analyst Eric Balchunas from Bloomberg has maintained a 90% probability for the approval of the LTC ETF. Nevertheless, he pointed out that the listing on DTCC serves as a preparatory step for the launch of the ETF, rather than a direct signal of approval.
Anticipation Surrounding LTC ETF
Meanwhile, Nate Geraci of ETF Store shared a similar outlook but suggested that the LTC ETF might enter the market in the near future, drawing parallels with the approval journey of BTC ETFs. He conveyed,
“The Litecoin ETF ‘listing’ on DTCC brings back memories of the Bitcoin ETF journey… This development may not indicate a definitive outcome, but it seems highly probable that an LTC ETF will soon be accessible through various brokerages.”
For those who are not acquainted with the details, the filing for the Canary LTC ETF 194-b was registered in the Federal Register on 4th February.
The Securities and Exchange Commission (SEC) has the authority to either approve or reject the filing within the next 45–90 days post its appearance on the Federal Register. This timeline implies that an official decision from the SEC can be expected around the end of March or early May.
Furthermore, similar LTC ETF petitions were submitted by Grayscale and CoinShares, which have received acknowledgment from the regulatory authority.
It is noteworthy that traders have shown a keen interest in LTC owing to the ETF speculation. As per Santiment’s data, LTC’s market capitalization saw a significant 46% surge, with the daily trading volume escalating to nearly $10 billion in just the past week.
“A significant portion of this increase stems from the substantial growth in the network’s utility, as evidenced by the processing of $9.6 billion in daily transaction volume over the last 7 days.”
Traders demonstrated speculative behavior in the Futures markets, utilizing leverage to maximize their returns.
According to Coinglass, LTC’s Open Interest (OI) rates have risen to $869 million. During the peak of the 2021 market cycle, the OI reached $1 billion, indicating that the current speculative fervor is nearing levels observed during the previous cycle’s peak.
In terms of price fluctuations, LTC stood out among the various altcoins by maintaining its gains from November. In February alone, the altcoin witnessed an increase of approximately 37%, trading at $134 at the time of writing.
Nevertheless, the price activity encountered a significant resistance level in the short term alongside the upper limit of the trading range. The Moving Averages and the mid-range around $120 could serve as attractive entry points if the speculative interest persists.
Despite this, a decisive breakout rally could propel LTC towards $175.