In contrast to most other cryptocurrencies, Litecoin (LTC) has had an exceptionally strong month. This seems to have everything to do with developments surrounding a possible Litecoin exchange-traded fund (ETF).
The network has grown strongly in recent weeks: the number of transactions rose by no less than 250% in February and the price rose by 75%.
Litecoin ETF pending with watchdog
On February 19, 2025, the US Securities and Exchange Commission (SEC) took the application for the listing of the CoinShares Spot Litecoin ETF on the Nasdaq into consideration.
This step is an important milestone in the approval process of the ETF. Subsequently, on February 20, a listing of the Canary Capital Litecoin ETF appeared in the system of the Depository Trust and Clearing Corporation (DTCC) under the ticker LTCC.
Such a listing does not mean that the products have already been approved or are ready for trading, but it does indicate that the parties involved are preparing for a possible launch.
According to Bloomberg ETF analysts James Seyffart and Eric Balchunas, there is a 90% chance that a litecoin ETF will be approved later this year.
Price and volume of crypto currency skyrocket
In recent years, Litecoin has not received the same hype on social media as other major cryptocurrency projects such as Ethereum, Solana and XRP.
However, that could change with the arrival of an ETF. The mere possibility that it will be launched this year will put the cryptocurrency network back in the spotlight.
While many cryptocurrencies have fallen sharply, in many cases by more than 10%, litecoin has actually risen sharply in February. On February 3, the LTC rate fell to $80, but recently reached almost $140 after a rise of 75%.
In addition to the price increase, the volume of transactions has also risen to an average of $9.6 billion over the last seven days. This is an increase of 243% since the end of August, when the daily volume was around $2.8 billion. An increase in network usage is usually a bullish signal, because more users are active and more transactions are taking place.
⚡️ Litecoin doesn’t typically get the social media hype of other top cap cryptocurrencies like XRP, Solana, Chainlink or Cardano. But on the back of some legitimate ETF rumors, it has quietly seen a big jump in value recently. From February 2 to February 19, 2025, Litecoin’s… pic.twitter.com/FSRpoKt2zd
— Santiment (@santimentfeed) February 20, 2025
With the new American government, which seems to have a more positive attitude towards crypto, approval could open the door not only for a litecoin ETF, but also for other crypto currencies.
