Litecoin (CRYPTO: LTC) was the largest gainer on Tuesday, following a company called Canary Capital filing a proposal with the Securities and Exchange Commission for an exchange-traded fund that tracks the price of the proof-of-work cryptocurrency. What’s happened:
The coin was created through a hard fork from Bitcoin back in 2011 and traded above 7% during this period, beating all other cryptocurrencies in the market—including Bitcoin, of course.
Data shows that LTC trading volumes have surged 149% over the past 24 hours, as buying pressure catapulted the coin to its highest value in two and a half months.The rally comes after an S-1 filing submitted Tuesday by Canary Capital, a required filing by issuers to file with their offering new securities.
The proposed Canary Litecoin ETF is specifically designed to provide fully collateralized exposure to the movement of the price of Litecoin held in trust. Also read: Mark Cuban defends Kamala Harris’s crypto knowledge and appears to take a dig at Trump for selling tokens and merchandise: ‘Unlike your guy, she doesn’t pretend.
The Litecoin ETF application is one week after Canary Capital’s file for a similar investment, which has the price tracking the payment-focused cryptocurrency XRP (CRYPTO: XRP).
Litecoin was meant only for payment but has largely evolved to become an instrument for speculation and investment, and it is constantly traded in the market. Interestingly, though, Dogecoin (CRYPTO: DOGE) occupies the same technological space as Litecoin’s base.
According to Dogecoin co-founder Billy Markus, in an interview with Benzinga in 2021, the introduction of auxiliary proof-of-work (AuxPOW) in 2014, which was proposed by Litecoin’s Charlie Lee, was a cue that enabled Dogecoin to be merge-mined with any Scrypt coin. Like Bitcoin, the contentious security vs.
commodity debate over the difficult decisions of U.S. regulators has assisted Litecoin in avoiding such criticisms, a factor that may provoke issuers to file for ETF applications.
Why It Matters: Trump launched a highly publicized decentralized finance project last month, announcing that the project’s governance token, WLFI, will be sold on Tuesday. Price Action: Litecoin was trading at $71.72 at this time, trading 7.31% higher in the last 24 hours.