Exciting news for Litecoin! The chances of a Litecoin ETF (exchange-traded fund) being approved have jumped to 85% on Polymarket today. This surge follows the successful listing of Canary Capital’s proposed spot Litecoin ETF on the Depository Trust and Clearing Corporation (DTCC) system.

This news is a big step forward in the US’s push to approve more ETFs for alternative cryptocurrencies (altcoins). Remember, the first altcoin ETF, an Ethereum ETF, already got the green light from the US SEC (Securities and Exchange Commission) back in May 2024.

Canary Capital’s Litecoin ETF Listed on DTCC

The optimism around a Litecoin ETF is palpable! Polymarket is showing an impressive 85% chance of approval, a significant 35% jump since Thursday. This excitement stems from the listing of Canary Capital’s application on the DTCC system, under the ticker LTCC.

“Canary Capital Litecoin ETF has been listed on the Depository Trust and Clearing Corporation system under the ticker LTCC! The DTCC is a key part of global financial markets and processes trillions of dollars in securities transactions each day,” the Litecoin Foundation shared on X (Twitter).

The Litecoin Foundation explained that this DTCC listing is a crucial step in preparing for the fund’s possible launch, indicating progress in setting up the trading infrastructure. However, they also cautioned that this listing isn’t a guaranteed ticket to approval from the US SEC, which will ultimately decide its fate.

“Doesnt mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds,” wrote ETF analyst Eric Balchunas.

Interestingly, this DTCC listing comes hot on the heels of the SEC’s formal acknowledgment of Canary Capital’s Litecoin ETF application just three weeks ago. This initial SEC nod kicked off a public comment period, suggesting the application cleared the first hurdle of meeting basic filing requirements.

Canary Capital actually filed its application for this Litecoin ETF back in October 2024, making them one of the early players hoping for SEC approval for this type of investment product. Their effort is part of a larger trend, with major asset managers like Grayscale and CoinShares also looking to launch financial products linked to Litecoin.

And as BeInCrypto recently reported, Nasdaq has also jumped into the ring, filing paperwork (19b-4 forms with the US SEC) to list and trade two exchange-traded products (ETPs) from CoinShares, one of which is another Litecoin ETF! These moves clearly indicate a growing interest from big institutions in offering more diverse cryptocurrency investment choices.

In the meantime, analysts are feeling cautiously optimistic about the chances of Litecoin ETFs getting approved. Some experts believe Litecoin’s history as a Bitcoin offshoot and its classification as a commodity could actually work in its favor with regulators, making approval more likely. This is in contrast to other cryptocurrencies, like XRP, where ongoing legal battles with the SEC are still casting a shadow.

Even though prediction markets like Polymarket are showing a surge in the predicted likelihood of a Litecoin ETF approval, it’s important to remember that these are still just predictions. The SEC’s approval process is famously thorough, designed to ensure that any new financial product meets strict requirements for protecting investors and maintaining market fairness.

So, while this DTCC listing is definitely a step in the right direction, the final decision on whether Canary Capital’s spot Litecoin ETF gets the green light is still entirely in the hands of the SEC.

Interestingly, despite all the ETF excitement, the immediate impact on Litecoin’s price has been relatively calm so far. It’s only edged up by 3.37% since trading opened on Friday. According to BeInCrypto data, LTC is currently trading at $134.25 (as of writing).