The Securities and Exchange Commission (SEC) has officially recognized Canary Capitals proposal for a Litecoin ETF and invited public input as the potential for a US listing grows. Multiple fund managers have recently submitted applications for altcoin ETFs to the securities regulator.

However, according to Bloomberg ETF analyst Eric Balchunas, Canary Capitals Litecoin ETF is the only one that has advanced past the initial stage.

Litecoin ETF Approval Incoming?

In his latest update, Balchunas noted that Canary Capitals Litecoin ETF is the first altcoin 19b-4 filing to be acknowledged by the agency. He pointed out that all other similar applications were effectively shut down, as firms were instructed to withdraw them by Gary Genslers SEC.

With the Commissions comments on the S-1 and the acceptance of this filing, the Litecoin ETF is now the most advanced among altcoin proposals, having met all necessary regulatory requirements.

As such, the key question remains whether the SEC will take the full 240-day review period to reach a decision or opt for a faster approval process something that, at this stage, remains uncertain.

According to the SECs January 29 filing, the public has a 21-day window from the documents publication in the Federal Register to submit opinions on the proposed fund. This feedback will help shape the regulators decision-making process.

After the comment period ends, the SEC has up to 45 days to reach a conclusion, though it retains the right to extend the review period to 90 days if needed. The final outcome will involve approval, rejection, or a more detailed examination of the ETF application.

Polymarket Odds Favor Litecoin ETF Approval

During Genslers tenure as SEC Chair, the agency frequently postponed decisions on crypto ETFs. It was also notorious for often delaying approvals until the final deadline. However, since his departure, the regulatory landscape is expected to shift. Acting Chair Mark Uyeda has shown a more receptive attitude toward crypto-related financial products, which has led to a surge in ETF applications beyond just Bitcoin.

This shift has fueled optimism among crypto investors. In fact, traders on Polymarket, a decentralized prediction platform, have placed an 86% probability that the SEC will approve a Litecoin ETF this year.

The recent development surrounding Canary Capitals Litecoin ETF proposal has had a significant positive impact on Litecoin’s price. Over the past day, LTC surged nearly 20%, trading above $132. The latest price movement has also strengthened the crypto assets monthly gains, bringing it closer to approximately 28%.

Additionally, on-chain data hints at growing whale accumulation, which could be indicative of large investors positioning themselves in anticipation of a possible ETF approval.