US SEC acknowledges Coinshares filing for Litecoin ETF
The United States Securities and Exchange Commission (SEC) has officially acknowledged the filing for a Litecoin ETF by Coinshares, submitted through the Nasdaq Stock Market LLC. This marks a significant step forward in the process, as the proposal for rule changes was initially submitted on February 7. The SEC's recognition has now opened a 21-day discussion period for interested parties to provide their input.
The proposed Litecoin ETF is expected to bring substantial changes to the market. Coinshares plans to manage the ETF through a trust established in Delaware on December 10, 2024. The trust will passively hold Litecoin (LTC) without engaging in trading or risk strategies. Each share of the ETF will represent a specific allocation of LTC, with shares redeemable in baskets of 5,000. The ETF will trade on the Nasdaq exchange from 4:00 AM to 8:00 PM Eastern Time, adhering to the exchange's listing and trading rules.
Following the announcement, Litecoin experienced a notable market rally, with its price reaching $136.56, an 11% increase within a single day. This surge highlights growing investor interest, particularly as Litecoin continues to gain traction alongside other established cryptocurrencies. The network has also seen a significant increase in mining activity, with its hashrate tripling since January 2024, further enhancing its security and reliability.
Historically, Litecoin has been among the top cryptocurrencies, and there is speculation that it could re-enter the top 10 if its price doubles to around $270. The Grayscale Litecoin Trust, which holds 2.04 million LTC from a circulating supply of 75.5 million, could play a pivotal role in this development. However, the trust's shares currently trade at a discount, reflecting relatively low mainstream interest in Litecoin-related investment products.
As the discussion period progresses, the market will closely monitor the SEC's next steps and the potential impact of the Litecoin ETF on the broader cryptocurrency landscape. For more details, visit the original article on Cryptopolitan: https://www.cryptopolitan.com/de/us-sec-acknowledges-coinshares-filing-for-litecoin-etf/.
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