- The SEC must make a ruling on the Litecoin ETF by May 5, 2025, in relation filing SR-NASDAQ-2025-005.
- Litecoin price rises 2.5% to $89.30, with trading volume up 150% to $950M.
- Whales accumulated 750,000 LTC worth $65M in the past week, signaling confidence.
The proposed offering of a Litecoin exchange-traded fund (ETF) by Canary Capital is due to be decided upon by the U.S.SEC on May 5, 2025. The SR-NASDAQ-2025-005 filing has caught the attention of the cryptocurrency market. According to a statement by the Division of Trading and Markets, the SEC has set this date to either approve, disapprove, or start proceedings to further consider the proposed rule change.
For Litecoin (LTC), a cryptocurrency that has been gathering steam, the decision carries weight. This one is unlike other crypto ETF filings delayed earlier by the SEC, which still remains on track for a potential ruling. Some have speculated that the early lack of a delay is a sign of an early approval, while others believe the SEC will bump up the review period.
Market Responds to ETF Speculation
Litecoin’s price has moved in anticipation. On May 5, 2025, investor interest in cryptocurrency increased as the cryptocurrency went up 2.5% to $89.30. Trading rose 81 percent in the last 24 hours to $480 million.
It is part of a broader crypto market trend of optimism. Since April, the price of Litecoin has been slowly recovering and, as of the last 24 hours, has stayed above the 50–day moving average of $82.87. A Relative Strength Index at 56 says that there is room for growth, and expanding Bollinger Bands hint at rising volatility. Levels of support can be seen at $82 and $78, levels of resistance at $90. This could be the sign of a stronger upward trend with the resistance break from here.
Regulatory Context and Implications
On January 16, 2025, the Canary Capital Litecoin ETF was filed for Nasdaq’s 19b-4 process in which exchanges are able to propose new product listings. But the SEC did not recognize the filing until Jan. 29, when it commenced its review. The importance of this step is that the SEC’s previous leadership was very hesitant to approve the ETFs associated with the smaller cryptocurrencies.
The SEC’s decision could be a portent for others cryptocurrencies waiting for approval of ETFs. Litecoin’s proof of work mechanism is akin to that of Bitcoin, and may help to dispel regulatory worries compared to other similar alt coins such as Solana or XRP, which are currently involved under legal scrutiny. If Litecoin is approved, it could have an institutional appeal and therefore the price could go up and more of it could get adopted by the mainstream.
The SEC’s history with crypto ETFs is one of caution.Despite the recent approval of many Ethereum and Bitcoin ETFs, the approval process for other altcoins has been much slower. If approved, the outcome of the Litecoin ETF could affect the timeline for other pending applications, including those for Dogecoin and Solana, which have final deadlines of October 2025.
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