Why Is Canary Litecoin ETF Approval by US SEC This Week Crucial for Crypto Market?

After approving the Generic Listing Standards a few weeks ago, the U.S. Securities and Exchange Commission (SEC) could approve multiple spot exchange-traded funds (ETFs) for altcoins this week, starting with the Canary spot Litecoin ETF. This would set the stage for the “Uptober” rally in the crypto market.

US SEC’s Final Decision on Canary Litecoin ETF Due This Week

The final deadline for the US SEC to approve or deny the Canary Litecoin ETF is due on October 2. The crypto market will witness the first ETF approval for altcoins under the Securities Exchange Act of 1934.

Canary spot Litecoin ETF will list on Nasdaq, with trading set to begin in the next few days. Notably, the SEC has also withdrawn its decision to designate a longer period for the ETF this week. This comes following the approval of the Generic Listing Standards for crypto ETFs two weeks ago.

The commission has also withdrawn its notice on a longer review period for the CoinShares Litecoin ETF. If the commission approves the Canary Litecoin ETF, other Litecoin ETFs will also get the greenlight. Bloomberg analysts Eric Balchunas and James Seyffart set 95% odds of approval by the SEC.

Expert on Why Canary Litecoin ETF Is Key for the Crypto Market

ETF Prime host and The ETF Institute co-founder Nate Geraci said the next few weeks are “enormous” for spot crypto ETFs. He revealed that the SEC final deadlines are approaching for numerous crypto ETF filings. Starting this week, with a deadline on the Canary spot Litecoin ETF.

This follows the SEC final decision on Solana (SOL), Dogecoin (DOGE), XRP, Cardano (ADA), and Hedera (HBAR) ETFs. He claims the regulator can approve any or all of these whenever. All eyes are now on the much-anticipated approvals for ETF applications this week, which will trigger a crypto market rally.

LTC Price Rebounds Nearly 3%

LTC price jumped almost 3% in the past 24 hours, currently trading at $106.37 after facing resistance at $107. The 24-hour low and high are $102.88 and $107.22, respectively. Furthermore, the trading volume has increased by 38% in the last 24 hours, indicating massive interest among traders.

Analysts expect Litecoin to rally after reclaiming $114. Meanwhile, indicators such as the relative strength index (RSI) signal potential for further upside momentum.

CoinGlass data showed mixed sentiment in the derivatives market. The total LTC futures open interest jumped 1% to $796.30 million in the last 24 hours. However, LTC futures open interest in 4-hour and 1-hour have dropped, signaling cautious trading.