- Short-term LTC traders increased by over 12% in the past month.
- Litecoin ETF approval speculation triggered LTC adoption among retail investors.
- Canary Capital listed its Litecoin ETF on the DTCC.
Developments in Litecoin’s ecosystem highlight growing retail adoption as speculations of a potential spot LTC ETF circulate.
Reports indicate that short-term LTC traders increased over 12% in the past month. Onchain data shows that the number of addresses holding LTC tokens rose from about 510,000 on January 24 to nearly 580,000 by now.
Retail Adoption & Onchain Growth
In addition to the surge in trader activity, daily transactions on the Litecoin network climbed to $9.6 billion after ETF issuers stepped up their efforts regarding the product in the United States. Litecoin’s market cap soared by nearly 50% in February, further highlighting increased investor interest.
Notably, the buzz around LTC increased following the SEC’s acknowledgment of the proposal for a rule change to list the CoinShares spot Litecoin ETF on the Nasdaq. In the meantime, crypto community members spotted a listing of Canary Capital’s Litecoin ETF on the Depository Trust and Clearing Corporation (DTCC) system under the ticker LTCC.
Related: Litecoin ETF From Canary Capital Gets Listed on DTCC: LTC Price Impact Analyzed
ETF Proposals & Market Impact
According to the Litecoin Foundation, the DTCC is a “key part of global financial markets.” The platform processes trillions of dollars in securities daily, and listing there signals the Issuer’s level of preparedness for a potential ETF launch. However, it does not guarantee that the SEC would approve the ETF.
The excitement surrounding a possible Litecoin ETF approval stems from a similar event with Bitcoin last year, when SEC approval of a spot Bitcoin ETF triggered a notable rally.
Related: Litecoin ETF Could Beat XRP in ETF Race, Despite Multiple SEC Filings
Last year’s spot Bitcoin ETF approval by the SEC triggered a significant rally for the pioneer cryptocurrency. It opened the channel for institutional investors to participate in the Bitcoin market, resulting in notable inflows.
Litecoin traded for $123.5 at the time of writing, with minimal signs of growing adoption, per the price movement. However, analysts expect the situation to change if the SEC approves the ETF applications. Hence, the crypto community members gravitate toward the first-generation cryptocurrency.
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