As the cryptocurrency space anticipates the inauguration of President-elect Donald Trump, excitement grows around the possibility of new regulatory changes that could lead to a wave of cryptocurrency exchange-traded funds (ETFs). Among the coins most likely to receive their own ETFs is Litecoin (LTC), which has recently gained momentum due to promising developments in its application process.

Canary Funds recently amended their filing for a Litecoin ETF, prompting analysts to speculate that the U.S. Securities and Exchange Commission (SEC) may be actively engaging with the proposal. This move has fueled optimism within the crypto community, as analysts Eric Balchunas and James Seyffart from Bloomberg Intelligence pointed out that the amendment could indicate positive movement for Litecoin’s approval.

The application for Litecoin’s ETF gained further traction when Nasdaq filed a 19b-4 form, compelling the SEC to approve or reject the proposal within the next year. Following these developments, Litecoin’s price has surged, increasing by 18% in just 24 hours.

Despite being ranked 11th in market capitalization among cryptocurrencies, Litecoin’s standing is strengthened by its status as a Bitcoin fork. This means that it operates on the same fundamental protocol as Bitcoin, including the use of the Proof-of-Work consensus mechanism. Unlike other cryptocurrencies, such as Solana (SOL) and Ripple (XRP), which are facing regulatory scrutiny, Litecoin has not been classified as a security by the SEC.

The approval of Litecoin’s ETF could mark a significant step in the broader adoption of cryptocurrency ETFs. Following Litecoin, other cryptocurrencies, including Bitcoin and Ethereum, may be next in line to receive their own regulated ETFs, signaling a shift toward greater institutional involvement in the crypto market. With new leadership at the SEC, the path for more crypto ETFs seems more promising than ever before.