Litecoin daily transactions ballooned by ETF buzz

Growing confidence in the approval of a spot Litecoin ETF has driven the blockchain’s activity to nearly $10 billion in daily transactions.

Litecoin (LTC) processed over $9.6 billion in daily volume between Feb. 15 and Feb. 21, as the U.S. Securities and Exchange Commission appeared increasingly likely to approve a spot LTC exchange-traded fund.

Santiment data showed a surge in user activity, fueled by “clear growing excitement” for a Litecoin ETF. Daily transactions have increased by 243% over the past five months, coinciding with Canary Capital’s filing for a spot LTC ETF with the SEC in October.

Additional applications from issuers such as Grayscale and CoinShares have further strengthened the network’s bullish momentum. According to Santiment, LTC’s market capitalization surged by 46% between Feb. 1 and Feb. 19.

Wrapping digital assets in ETFs enables investors to gain crypto exposure through regulated markets, similar to stock trading. It also eliminates the need to manage private keys or wallets, lowering technical barriers to entry and expanding crypto access.

Issuers eyed an expanded crypto ETF suite 13 months after spot Bitcoin (BTC) products debuted on Wall Street. 

President Donald Trump’s pro-crypto agenda opened the doors for broader adoption as his administration reformed agencies like the SEC and replaced skeptics such as Gary Gensler.

Wealth managers have asked for permission to list LTC, (XRP), Solana (SOL), and Dogecoin (DOGE) funds. However, analysts said Litecoin had the highest approval chances. Bloomberg experts see a 90% likelihood that the SEC will approve a spot LTC ETF.

Canary Capital’s filing will probably be the first Litecoin fund out of the gate, as it was the first issuer to file its S-1 documents. The SEC has also started reviewing all pending spot LTC funds.