Last updated:
Author
Ruholamin Haqshanas
Author
Ruholamin Haqshanas
Share
Why Trust Cryptonews
Litecoin’s network activity has skyrocketed, with daily transaction volumes reaching $9.6 billion, fueled by mounting excitement over potential U.S.-listed Litecoin exchange-traded funds (ETFs).
According to a February 21 report from on-chain analytics platform Santiment, this surge in network utility has played a key role in boosting Litecoin’s (LTC) market capitalization by 46% between February 2 and February 19.
The uptick marks a significant increase from late August when Litecoin processed approximately $2.8 billion in daily transactions—representing a 243% rise in just five months.
LTC’s Price Double Since Early November
Notably, LTC’s price has doubled since early November, outpacing the broader cryptocurrency market, which has gained around 42% during the same period.
Investor enthusiasm has intensified amid developments surrounding proposed Litecoin ETFs.
The U.S. Securities and Exchange Commission (SEC) acknowledged a rule-change filing on February 19 for the CoinShares Spot Litecoin ETF to be listed on the Nasdaq.
A day later, the Depository Trust and Clearing Corporation (DTCC) listed Canary Capital’s proposed Litecoin ETF under the ticker “LTCC,” signaling preparations for a potential market debut.
The DTCC’s involvement is significant, given its critical role in processing trillions of dollars in daily securities transactions.
The Litecoin Foundation emphasized that the DTCC listing is a “key preparatory step” toward a fund launch, though it does not guarantee approval.
Bloomberg ETF analyst Eric Balchunas weighed in, cautioning that while the DTCC listing is promising, it doesn’t ensure immediate approval or trading.
However, he noted that analysts still estimate a 90% chance of approval this year.
Market reactions have been swift. Following the DTCC listing news, LTC surged by approximately 8.5%, climbing from an intraday low of $127 to $138 before stabilizing.
Over the past two weeks, Litecoin has gained nearly 30%, significantly outperforming Bitcoin, which has remained relatively flat after slipping into the five-figure range earlier this month.
Gary Gensler’s Departure Sparks Rise in Crypto ETF Filings
Just recently, asset management firm 21Shares officially filed with the U.S. Securities and Exchange Commission (SEC) to introduce a spot Polkadot ETF.
The filing comes at a pivotal time for the SEC and cryptocurrency ETFs, following the resignation of SEC Chair Gary Gensler on Jan. 20.
Gensler, known for his cautious stance on crypto regulations, stepped down amid increasing pressure for greater regulatory clarity in the digital asset space.
Likewise, Tuttle Capital Management filed applications for ten cryptocurrency-based leveraged ETFs, including funds tied to popular meme coins.
Analysts suggest the filings are part of a broader strategy to test the boundaries of an SEC under Trump-era crypto-friendly regulators.
The proposed ETFs include leveraged funds that aim to deliver twice the returns of their underlying assets, such as the meme coins Official Trump ($TRUMP) and Melania Meme ($MELANIA).
Furthermore, Osprey Funds and REX Shares have filed for meme coin ETFs covering Dogecoin (DOGE), Official Trump ($TRUMP), and Bonk (BONK) on Jan. 21.
Meanwhile, the SEC has also granted initial approval for Bitwise Asset Management’s Bitcoin and Ethereum ETF, which would track both BTC and ETH in a single fund.
