Why the US SEC's Potential Approval of the Canary Litecoin ETF This Week Is Critical for the Crypto Market

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Additionally, the SEC has withdrawn requests for a longer review period for the CoinShares Litecoin ETF, indicating that approval for the Canary Litecoin ETF is likely.

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.

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.