Litecoin’s transaction volume surges amid growing ETF interest, with 90% approval odds for 2023 - IcoHolder.

Daily transaction volume on the Litecoin network has skyrocketed to $9.6 billion as momentum builds around potential exchange-traded funds (ETFs) for the cryptocurrency in the United States. The surge coincides with a sharp rise in Litecoin’s market capitalization, which jumped 46% between Feb. 2 and 19, according to blockchain analytics firm Santiment.

The heightened activity reflects growing investor interest, fueled by reports that issuers are positioning their Litecoin ETFs for regulatory approval. The Securities and Exchange Commission (SEC) acknowledged a proposed rule change on Feb. 19 to list the CoinShares spot Litecoin ETF on Nasdaq, marking a key step in the approval process. Additionally, a listing for Canary Capital’s Litecoin ETF appeared on the Depository Trust and Clearing Corporation (DTCC) system on Feb. 20, signaling further preparations for a potential launch.

Despite the excitement, Bloomberg ETF analyst Eric Balchunas cautioned that while such listings indicate issuers are making preparations, they do not guarantee immediate approval. However, analysts still place the odds of approval this year at 90%.

Market reactions to the ETF developments have been swift. Litecoin’s price jumped 8.5% following the DTCC listing, briefly reaching $138 before a slight pullback. Over the past two weeks, the cryptocurrency has gained nearly 30%, outpacing Bitcoin, which has remained relatively stable since early February.

With institutional interest in Litecoin growing and ETF issuers making strategic moves, the coming months could be pivotal for the asset’s mainstream adoption.