The ETF buzz is real. Since the SEC’s turnaround, the organization has ensured it undoes its previous ‘wrongs.’ As a result, it is looking to approve spot ETFs and bring in more relaxed regulations for the cryptos. This has driven people to the crypto market despite the fear of a trade war.
One coin riding the waves of success amidst the rumors of an ETF spot approval is Litecoin or LTC. The rumor of an LTC spot ETF approval has increased the transaction to $10 billion. Between February 15 and 21, the token processed around $9.6 billion in volume. This sudden increase in volume is solely fueled by the rumor that the SEC will approve Spot ETF for the token.
The Growth
Data from Santiment shows a considerable rise in user activity as the excitement for spot ETF is bubbling. As per data, daily transactions grew by 243% over the past five months. This coincides with Canary Capital’s spot LTC ETF filing with the SEC in October 2024. Additional data presented by Grayscale and CoinShares reflect the same thing as well.
As per data shared by Santiment, LTC’s market cap also spiked by 46% since February 1st. The cap is gradually growing as the rumor is slowly metastasizing into reality. ETFs bring regulatory clarity and exposure like mainstream stock markets. This not only makes the whole deal easier to manage but also makes it accessible. Spot ETFs eliminate the technical barriers, the need for private keys/wallets, and easier access.
Therefore, prominent wealth managers have backed the decision to approve spot ETFs for coins like LTC, SOL, Doge, etc. However, LTC will likely be the first to receive the approval out of the three. If LTC receives spot ETF approval, its price will soar and can even start a new chapter for crypto. Therefore, it is essential to wait and watch where the wind blows.
