- The SEC will decide on the Litecoin ETF on May 5 after accepting the filing in January
- Litecoin is trading around $86, and analysts have set a short-term target close to $500
- Analysts give the Litecoin ETF a 90% chance of approval, which is higher than XRP and ADA.
The U.S. Securities and Exchange Commission (SEC) is expected to announce its decision today, May 5, 2025, on Canary Capital’s proposed Litecoin (LTC) spot Exchange-Traded Fund (ETF). This move could dramatically shift the cryptocurrency market, as previous ETF filings for assets like XRP and Dogecoin faced constant delays. Notably, the Litecoin ETF remains untouched, sparking widespread speculation of a potential early approval that has analysts across the board taking notice.
Bloomberg Analyst Flags Unusual SEC Behavior
On May 5, Bloomberg ETF analyst James Seyffart posted on X, drawing attention to the SEC’s pattern of delaying other crypto ETF filings while choosing not to postpone the Litecoin ETF. He called it “the asset that has the best chance of receiving early approval,” although he still believes a delay is the likelier outcome.
According to Seyffart, the anomaly in timing stands out, considering the SEC has already postponed numerous filings under similar circumstances. His observation underscores a broader trend in which the regulatory body has historically resisted smaller crypto ETFs, making Litecoin’s uninterrupted review process particularly notable.
Analysts now place the approval probability for the Litecoin ETF at 90%, citing its technical resemblance to Bitcoin and the SEC’s prior classification of LTC as a commodity. This regulatory foundation gives Litecoin a unique advantage over competitors like XRP, Solana, and Cardano.
Historical Chart Signals Price Explosion
Crypto analyst Crypto Patel posted a detailed chart on X outlining key breakout zones for Litecoin, with strong support observed at $65.455, marked as the “Best Accumulation Zone.” As of press time, LTC is trading at $86.290. Patel’s technical analysis sets a short-term target at $500, representing a potential 663.88% increase, and a long-term target of $1,458.301.
Source: X
The chart also reflects a historical surge of 4,005.97% that propelled LTC to $255.719 in the past. Patel suggests a repeat is possible if regulatory momentum continues. “Despite testing investors’ patience, LTC remains poised for a sharp move,” Patel stated, emphasizing a bullish pattern. Other ETF proposals from Grayscale and CoinShares, in addition to Canary Funds, remain under review. Final SEC decisions are expected by October.
Related: Will Litecoin’s (LTC) 930,000 Token Buy Drive Future Growth?
Will ETF Approval Be the Spark for Litecoin’s Next Bull Run?
Filed on January 16 through Nasdaq’s 19b-4 process, the Litecoin ETF application was formally acknowledged on January 29, marking a shift in SEC engagement with smaller cryptocurrencies. This review occurs under Acting Chairman Mark Uyeda, distinguishing it from earlier leadership that resisted similar proposals.
The statistical edge thus seemingly takes Litecoin beyond the ranks among institutional investors. According to Bloomberg, Litecoin is more likely to be approved than other altcoins: 85% for XRP, 80% for Dogecoin, 75% for Cardano and Polkadot, and 75% for HBAR and Avalanche. The limelight is again fixated on the SEC since Bitcoin ETF inflows are rising again. Will the next institutional wave be led by Litecoin?
