Litecoin (LTC) has seen a strong surge in price, jumping 18% in the past 24 hours to $120.56, fueled by growing speculation that the cryptocurrency could soon receive regulatory approval.
Litecoin (LTC) has seen a strong surge in price, jumping 18% in the past 24 hours to $120.56, fueled by growing speculation that the cryptocurrency could soon receive regulatory approval for a U.S.-based exchange-traded fund (ETF). The price spike has followed an amended filing for a Litecoin ETF from Canary Capital, submitted to the U.S. Securities and Exchange Commission (SEC) on Jan. 15. This filing has ignited optimism in the market, with analysts seeing it as an indication that Litecoin could be the next cryptocurrency to gain approval for a spot ETF, after Bitcoin and Ethereum.
Over the past day, Litecoin's trading volume surged by over 250%, reaching $1.83 billion. On-chain data from Santiment revealed that large investors, including "whales" and "sharks," have been accumulating significant amounts of Litecoin. These investors have added around 250,000 LTC, worth approximately $29 million, since Jan. 9. This activity has fueled further confidence in the market, contributing to the recent price rally.
The amended filing submitted by Canary Capital addresses key regulatory concerns, including custodial arrangements with Coinbase and BitGo. These revisions are seen as a response to feedback from the SEC and are considered a positive step toward securing approval. Bloomberg ETF analysts Eric Balchunas and James Seyffart have commented on the filing, with Balchunas suggesting that it could be a sign of progress. However, Seyffart emphasized that further steps are required before the SEC’s approval process can officially begin.
Favorable technical indicators have also supported Litecoin's price. The cryptocurrency recently bounced off the $98 support level for the third time since December 2024. The next resistance levels are at $125 and $135, with Litecoin’s price currently trading above both the 50-day and 200-day moving averages. The Relative Strength Index (RSI) is at 62, indicating that there is still potential for further price increases before entering overbought territory.
Despite the recent rally, Litecoin’s price remains about 72% below its all-time high of $410, reached in May 2021. If Litecoin secures approval for its ETF, it could experience substantial growth, making the current price point an attractive entry point for some investors. Additionally, competition for the next U.S. spot cryptocurrency ETF is heating up, with other firms like Bitwise and VanEck pushing for ETFs for altcoins like Solana.
With Paul Atkins set to replace Gary Gensler as SEC chairman, the leadership change could have important implications for the regulatory landscape, possibly making it easier for more cryptocurrencies to gain approval for ETFs. Investors are now closely watching the developments around Litecoin and other cryptocurrencies as they navigate the complex approval process for ETFs.
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