Litecoin (LTC/USD) made headlines on Tuesday as it became the biggest gainer in the market. This surge followed the announcement that Canary Capital filed for an exchange-traded fund (ETF) to track the price of this proof-of-work cryptocurrency.
As of now, Litecoin's price jumped over 7%. It outperformed all other cryptocurrencies, even Bitcoin (BTC/USD). In the last 24 hours, trading volume for LTC skyrocketed by 149%. This buying frenzy pushed the coin to its highest value in two and a half months.
The excitement began with Canary Capital's S-1 filing. This filing is a necessary step for companies wanting to offer new securities. The proposed Canary Litecoin ETF aims to give investors a way to benefit from the price movements of LTC held in a trust.
Interestingly, just a week earlier, Canary Capital submitted a similar application for an ETF focused on XRP (XRP/USD), another cryptocurrency aimed at payments. While Litecoin started as a payment method, it has evolved into a popular tool for speculation and investment.
It’s also worth noting that Dogecoin (DOGE/USD) is built on technology derived from Litecoin. Billy Markus, who co-created Dogecoin, shared in a 2021 interview that the auxiliary proof-of-work (AuxPOW) mechanism, introduced by Litecoin creator Charlie Lee in 2014, allowed Dogecoin to be merge-mined with any Scrypt coin.
Like Bitcoin, Litecoin has largely avoided regulatory scrutiny in the ongoing debate about whether it should be classified as a security or a commodity. This might be why issuers are eager to file for ETF applications.
As it stands, Litecoin is trading at $71.72, reflecting a 7.31% increase in the last 24 hours, according to Benzinga Pro. This exciting movement in the market highlights the growing interest in Litecoin and its potential.