Litecoin Transaction Volume Surges Amid Growing Confidence in Spot ETF Approval

The Litecoin blockchain has witnessed a significant surge in activity, with daily transactions reaching nearly $10 billion, driven by growing confidence in the approval of a spot Litecoin exchange-traded fund (ETF).

According to recent data, Litecoin processed over $9.6 billion in daily volume between February 15 and February 21, as the U.S. Securities and Exchange Commission (SEC) appeared increasingly likely to approve a spot LTC ETF.

Increasing User Activity and Market Capitalization

Santiment data showed a surge in user activity, fueled by “clear growing excitement” for a Litecoin ETF. Daily transactions have increased by 243% over the past five months, coinciding with Canary Capital’s filing for a spot LTC ETF with the SEC in October.

Litecoin’s market capitalization surged by 46% between February 1 and February 19, according to Santiment, further strengthening the network’s bullish momentum.

Benefits of a Spot Litecoin ETF

A spot Litecoin ETF would enable investors to gain exposure to Litecoin through regulated markets, similar to stock trading. This would eliminate the need to manage private keys or wallets, lowering technical barriers to entry and expanding crypto access.

Increased Adoption and Approval Chances

Issuers are eyeing an expanded crypto ETF suite, 13 months after spot Bitcoin products debuted on Wall Street. Analysts believe Litecoin has the highest approval chances, with Bloomberg experts seeing a 90% likelihood that the SEC will approve a spot LTC ETF.

Wealth managers have asked for permission to list LTC, XRP, Solana, and Dogecoin funds. However, analysts believe Litecoin’s chances of approval are higher due to its established market presence and the SEC’s review of pending spot LTC funds.

Canary Capital’s filing is likely to be the first Litecoin fund to be approved, as it was the first issuer to file its S-1 documents.

“Wrapping digital assets in ETFs enables investors to gain crypto exposure through regulated markets, similar to stock trading.”

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Key Takeaways:

• Litecoin’s daily transaction volume reached nearly $10 billion amid growing confidence in spot ETF approval.
• User activity surged by 243% over the past five months, coinciding with Canary Capital’s filing for a spot LTC ETF.
• Litecoin’s market capitalization increased by 46% between February 1 and February 19.
• A spot Litecoin ETF would enable investors to gain exposure to Litecoin through regulated markets.
• Analysts believe Litecoin has a 90% chance of approval, with Canary Capital’s filing likely to be the first to be approved.

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