Litecoin is in sharp focus today as traders eye the SEC’s decision on the Canary Litecoin ETF. The token is already heating up, with LTC price up 6% to $118.16 and trading volume exploding by more than 110%.
This sudden burst of activity comes as speculation builds around whether the SEC will finally give Litecoin the ETF nod in the U.S.
The main driver here is ETF hype. The SEC had an October 2 deadline for Canary Capital’s Litecoin ETF filing. While approval was technically delayed due to updated listing standards and the ongoing U.S. government shutdown, optimism hasn’t cooled.
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On Polymarket, odds for a Litecoin ETF approval surged to nearly 90%, sparking a wave of speculative buying.
ETF approvals have historically been huge catalysts, opening the door for institutional inflows. But there’s a catch: even though Litecoin’s 24-hour trading volume has jumped to $1.49 billion (a 107% increase), the SEC’s new universal standards could push final approval dates into 2026. That means there’s also risk of a “sell the news” pullback if delays stretch further.
The Grayscale LTC Trust withdrawal doesn’t touch the Canary Litecoin ETF, since that one was filed as a Form S-1, totally separate track
— Santolita (@SantoXBT) October 2, 2025
The Canary ETF decision deadline is still October 2nd
So the big question for $LTC is: does the SEC give the green light, or punt again?… pic.twitter.com/IW66byVhx1
Adding to the mix, Kraken rolled out 10x leverage on Litecoin trading on October 2. This boosted liquidity and turnover, with LTC’s ratio hitting 0.165.
But it also cranked up risk, with the funding rate spiking to +0.0054%, suggesting traders may be overextended on longs. That sets the stage for volatility ahead if liquidations kick in.
Finally, Litecoin is getting tailwinds from the broader market. Bitcoin’s rally above $118.7K has set off what many are calling “Uptober,” fueling altcoin moves.
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The Altcoin Season Index now sits at 66/100, and Litecoin’s 12% weekly gain has already outpaced both BTC and ETH. Even so, LTC’s overall market dominance remains just 0.22%, showing this rally is more about tactical speculation than a deep shift in fundamentals.
Short-Term Price Outlook If the SEC Approves
If the SEC does surprise the market with an approval for the Canary ETF, the Litecoin price could easily break through the $120 level and set its sights on the $130–$140 range in the near term. That would likely trigger more FOMO inflows from both retail and institutions.
On the flip side, if approval is punted yet again, traders could take profit after the big speculative run-up. In that case, a pullback toward $100 support is not off the table.
Either way, Litecoin remains one of the most intriguing plays in October. As Santolita put it on X, the “quiet OG” has a real shot at becoming the next approved ETF on U.S. soil, and the price action is already showing how much that possibility excites the market.
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