Litecoin(LTC) Surges 25%: NYSE Pushes for SEC Approval to Transform Litecoin Trust into Spot ETF
- NYSE requests SEC approval to convert Grayscale Litecoin Trust to spot ETF.
- LTC experienced a 25% price increase after ETF filing, signaling market interest.
- A successful approval could enhance LTCs liquidity and investor access.
The NYSE has submitted a proposal to the SEC to transform Grayscales Litecoin Trust into a spot ETF, which could offer new investment opportunities and drive market growth for LTC.
NYSE Seeks SEC Approval for Grayscale Litecoin Trust Conversion
The New York Stock Exchange (NYSE) has filed a request with the U.S. Securities and Exchange Commission (SEC) to convert the Grayscale Litecoin Trust into a spot exchange-traded fund (ETF).
This move aims to align LTC with Bitcoin and Ethereum ETFs to offer opportunities for investors. The application is currently under review by the SEC and the public has the chance to submit feedback on the proposal.
If the SEC approves this conversion, LTC would become the third cryptocurrency to have a spot ETF after Bitcoin and Ethereum. The approval could provide more liquidity and investment opportunities for both institutional and retail investors who seek regulated exposure to LTC.
Price Action
LTCs price witnessed a 25% increase after the filing was submitted. This price surge reflects renewed interest in the cryptocurrency, with long-term holders showing strong market resilience. According to the MVRV Long/Short Difference indicator, these holders remain profitable, further supporting Litecoins stability in the market.
According to IOMAP data, more than 2 million LTC units were purchased between $128 and $135, indicating strong support in that price range. A breakout above the $136 resistance level could push Litecoins price to $147. However, a failure to breach this level could result in a pullback, possibly to $117 or even $105.
Impact of SEC Approval of LTC ETF
The Grayscale Litecoin Trust conversion could enhance market confidence in LTC and attract interest among investors. A regulated ETF allows investors to avoid the complexities of directly holding LTC. Additionally, the approval would strengthen Litecoins position in the growing cryptocurrency ETF space.
The SECs decision could boost investor confidence in the cryptocurrency space as well as liquidity and interest in the cyptocurrency.
The approval of a Litecoin ETF would offer a clearer path for investors. LTCs potential for growth remains strong, especially with the developments around the ETF application.The application is under review, and the outcome could reshape the cryptocurrency market.
Read more: https://www.tronweekly.com/nyse-aims-to-convert-litecoin-trust-to-spot-etf/
Text source: TronWeekly
