Litecoin Price Surges as ETF Approval Odds Increase

Late last week, the price of Litecoin (LTC) rose nearly 10%, making it one of the top-performing cryptocurrencies. This surge comes as the chances of an exchange-traded fund (ETF) approval increase.

LTC’s Recent Price Movement

LTC’s price has been on the rise for three consecutive days, reaching its highest level since January 18. It has gained 47% from its lowest point this month. The rebound is largely attributed to CoinShares, a company with nearly $10 billion in assets, filing for a spot LTC ETF with the US Securities and Exchange Commission (SEC).

Why a Litecoin ETF Approval is Likely

Crypto analysts are optimistic about the SEC’s approval of a Litecoin ETF due to its similarity with Bitcoin. As a Bitcoin hard fork and proof-of-work cryptocurrency, Litecoin is not viewed as an unregistered security by the SEC. This increases its chances of approval.

A recent Polymarket poll indicates an 81% chance that the SEC will approve a Litecoin ETF. The agency’s request for comments from Canary, another company that applied for a similar fund, is seen as a positive step towards approval.

LTC ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given SEC gave comments on the S-1, Litecoin is seen as commodity and there’s new SEC sheriff in town.

Potential Impact of a Litecoin ETF Approval

A Litecoin ETF approval could bring fresh institutional capital to the coin. However, recent trends in Ethereum and Bitcoin ETFs suggest that institutional demand may be thin. Spot BTC ETFs have accumulated nearly $40 billion in assets, while Ethereum funds have just $2.8 billion.

Litecoin Price Analysis

The weekly chart shows that the LTC price has bounced back from the 2022 low of $42.17 to near $130. It has moved above the key resistance level at $113.66 and is forming a small bullish pennant chart pattern.

Key levels to watch:

  • Resistance: $147 (highest swing in December)
  • Support: $92.7 (ascending trendline)
  • Potential target: $200 (psychological level)

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