Litecoin spikes 10% as Canary Capital applies for spot LTC ETF

Litecoin (LTC) jumped 10% to $70.8 briefly after Canary Capital, a crypto-focused investment management firm, officially lodged an application for its proposed spot Litecoin ETF.

Canary’s filing made it the first entity to seek approval for an ETF that tracks the spot prices of LTC, now ranking the 27th crypto asset by market cap, CoinGecko data shows.

Over the past seven days, LTC has risen over 7% as bulls dominate the crypto market, with Bitcoin edging closer to $68,000. However, LTC remains over 80% below its all-time high, which is still a distance to be covered.

Following the sudden increase, the crypto asset has retreated to around $69.5, still registering gains over the past 24 hours.

Prior to its proposed Litecoin ETF, Canary applied to the SEC earlier this month to seek approval for an XRP ETF.

Litecoin and XRP are also among the crypto assets that Grayscale offers through the Grayscale Litecoin Trust (LTCN) and the Grayscale XRP Trust (XRX).

Launched in 2018, the Litecoin Trust enables investors to gain exposure to the price movements of LTC without the complexities of directly buying, storing, and securing the crypto asset. The XRP Trust just debuted last month.

Canary’s applications come at a time when interest in crypto investments is on the rise, particularly after the successful launches of spot Bitcoin and Ethereum ETFs in the US. If approved, the new ETFs could potentially lead to increased liquidity and more stable pricing for the underlying assets.

While the company wants to diversify its crypto-related offerings, whether they will receive the SEC’s approval remains a big question, given that the regulator views most crypto assets, excluding Bitcoin and Ethereum, as securities.