Eric Balchunas said that approval chances for the Litecoin spot ETF application are now 90% and also said that it’s ready to start trading.
Litecoin ($LTC) is a popular Proof-of-work (PoW) blockchain network known as the lite version of the Bitcoin blockchain network. Charlie Lee, an MIT graduate and former Google engineer, founded Litecoin in 2011 so that Bitcoin users could get the best Bitcoin alternative network to process transactions with more efficiency.
On 21 Feb 2025, a Litecoin dedicated Crypto X account tweeted that Litecoin ($LTC) spot ETF by Canary Capital is almost ready to start trading under index $LTCC, as DTTC added the $LTCC application.
Bloomberg ETF analyst Eric Balchunas quoted this tweet by showing his agreement with this information & said that the Litecoin ETF is still not approved, but here, this development is proof that currently, there are more than 90%+ odds for the approval of Litecoin spot ETF application.
In a follow-up tweet, Balchunas said that the situation is even more favourable for Crypto spot ETF applications, as issuers are preparing in the back-end.
Earlier this Bloomberg expert predicted that the situation for the approval of spot ETF applications for Litecoin & Dogecoin was more than for other cryptocurrencies, which were labelled as an unregistered security token in several lawsuits by the American securities regulatory body SEC.
Litecoin Price Action
The latest developments around Litecoin spot ETF helping this PoW cryptocurrency to gain high activity. Between 15 Feb to 21 Feb, Litecoin blockchain processed over $9.6 billion in daily volume, as the US SEC appeared increasingly likely to approve a spot LTC exchange-traded fund.
The current trade price of $Litecoin is $128.2 & this price level is 11% higher over the last 30 days of the trading period.
SEC’s Changing Stance
The US SEC was never supportive of crypto spot ETF applications, especially under the leadership of its former chairman, Gary Gensler. At the time, it was very tough for the Ethereum blockchain to get approval, but somehow, community pressure played a vital role.
In the present time, ProCrypto Mark Uyeda handles the SEC’s key Crypto-related decisions, even though he is only acting chairman of the regulatory body.
Also, we can see that crypto companies are getting huge relaxation from the SEC body, relaunching their crypto-related services.
For example, Kraken restarted crypto staking services in the US, and Coinbase exchange launched USDC earning programs, which were restricted a couple of years ago.
So here we can say that not only the SEC body’s stance on the crypto space is softening, but also, in the backend, they’re working on a set of new rules & laws to solve the complexities around crypto regulation.
Read also: Big Win for Coinbase! Us SEC Drops Coinbase Lawsuit
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