The US SEC’s decision on the Canary Litecoin ETF this week could trigger a major crypto market rally, with Litecoin leading the charge
The US SEC is nearing a final decision on the Canary Litecoin ETF, which could be a game-changer for the crypto market.
If approved, it would be the first spot ETF for an altcoin, marking a significant step forward for Litecoin (LTC) and the broader altcoin space. This approval could trigger increased interest from both retail and institutional investors in altcoins.
Canary Litecoin ETF A Historic Approval for Altcoins
The SEC is set to make its final decision on the Canary Litecoin ETF by October 2. If approved, this would be the first-ever spot ETF for Litecoin. This approval follows the SEC’s recent move to approve the Generic Listing Standards for crypto ETFs.
Additionally, the SEC has withdrawn requests for a longer review period for the CoinShares Litecoin ETF, indicating that approval for the Canary Litecoin ETF is likely.
October will the month of ETFs for crypto!
The SEC faces 16 deadlines on products tied to $SOL, $XRP, $DOGE, $LTC, $ADA & $HBAR.
First up: Canary’s Litecoin ETF on Oct 2, then Grayscale’s Solana & Litecoin trusts (Oct 10), with WisdomTree’s XRP fund closing the month (Oct 24).… pic.twitter.com/M9dmrC0vzh
— Onur 🍌🦍 (@0xc06) September 29, 2025
The approval could pave the way for other altcoins to follow suit. If the SEC approves this ETF, it could encourage the approval of similar ETFs for other altcoins like Solana, Dogecoin, and XRP. The ETF will list on Nasdaq, and if approved, trading is expected to begin shortly thereafter.
Litecoin Price Surge and Growing Market Sentiment
Ahead of the potential approval, Litecoin has seen a nearly 3% price increase. The current price of LTC is $106.37, with a high of $107.22 in the past 24 hours. This rebound reflects strong market interest and growing optimism about the potential approval of the ETF.
The increased trading volume, up by 38% in the last 24 hours, further supports the bullish sentiment around LTC.
$BTC Has opened up with a CME gap and has continued higher since the futures open.
It has been quite a while since we did open with a gap. like this. These used to close quite quickly. If that were to happen here then the entire structure would look pretty bad in the short term.… pic.twitter.com/z4yoSOFUaO
— Daan Crypto Trades (@DaanCrypto) September 29, 2025
Analysts are watching for a potential breakout of LTC above the $114 resistance level. If Litecoin surpasses this mark, it could signal further upward momentum.
Key technical indicators, including the relative strength index (RSI), suggest there may be additional upside in store for LTC in the coming days.
The SEC’s Decision: A Catalyst for the Uptober Rally
According to Nate Geraci, host of ETF Prime, the SEC’s decisions in the next few weeks could have a major impact.
He emphasized that the final deadlines for several key crypto ETFs are approaching, including the Canary Litecoin ETF. The approval of these ETFs could act as a catalyst for a broader rally in the crypto market.
The SEC’s decision could boost institutional interest in altcoins. This may lead to increased prices across the crypto space.
Geraci noted that the SEC has the option to approve multiple ETFs, including those for Solana, Dogecoin, and Cardano. These approvals could provide legitimacy to the altcoin market and spark renewed interest from investors.
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