Why Is Litecoin (LTC) Soaring? ETF Optimism Triggers 19% Price Rally

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Litecoin (LTC), a cryptocurrency created based on the Bitcoin protocol, recorded substantial gains as anticipation of the approval of an exchange-traded fund based on the cryptocurrency gains momentum.

According to the price data from CoinMarketCap, LTC
soared nearly 19% in the past day. Currently, the US Securities and Exchange
Commission (SEC) is evaluating the Canary Litecoin ETF by inviting public
comments.

As the first altcoin ETF to reach this stage, the
market expects it to set a precedent for future cryptocurrency investment
products beyond Bitcoin and Ethereum. This development has fueled optimism in
the crypto market, with Litecoin prices surging in response.

According to a filing dated January 29, 2025, the SEC
has initiated a 21-day public comment period following the ETF proposal’s
publication in the Federal Register. This step followed Nasdaq’s submission of a 19b-4
filing on January 16, a necessary requirement in the approval process for
exchange-traded products.

Canary Capital’s Litecoin ETF is part of a broader
push to introduce alternative cryptocurrency ETFs into the US market. Just a week before this filing, Canary also applied
for an XRP-based ETF, demonstrating increased interest in expanding
institutional crypto investment options. Nasdaq’s involvement further
strengthens the case for Litecoin’s ETF approval.

If granted, Nasdaq will act as the listing exchange
for the investment product, positioning Litecoin as the first altcoin beyond
Bitcoin and Ethereum to gain regulatory recognition in the ETF space.

Following the SEC’s acknowledgment of the ETF
application, Litecoin’s price has experienced an upward momentum. According to
CoinMarketCap data, LTC soared 18% and 17% in the past day and week,
respectively, to trade at $133.The technical price indicators also show that
the digital asset has more prospects for upside.

Positive Market Sentiment

According to TradingView data, price had been on a
consolidation above the $108 since December 1. Price is now approaching the
$135 price resistance level, which has been tested twice since December 8.

Currently, LTC’s price is above the 50 and 200 moving
averages. The Relative Strength Index is currently 61. The SEC’s engagement
with the Litecoin ETF comes at a time when regulatory attitudes toward
cryptocurrencies appear to be shifting. Under the leadership of Acting Chair Mark Uyeda, the
agency has shown a willingness to explore a broader range of crypto investment
products.

A key move in this direction was the recent
appointment of Republican Commissioner Hester Peirce to lead a newly
established crypto task force. Peirce, known for her pro-crypto stance, has
been vocal about the need for regulatory clarity.

The SEC previously approved Bitcoin spot ETFs in
January 2024, followed by Ethereum ETFs later that year. These approvals set a
foundation for Litecoin’s current bid to enter the ETF market. The SEC has the
option to use the full 240-day review period before announcing a final ruling.

Litecoin (LTC), a cryptocurrency created based on the Bitcoin protocol, recorded substantial gains as anticipation of the approval of an exchange-traded fund based on the cryptocurrency gains momentum.

According to the price data from CoinMarketCap, LTC
soared nearly 19% in the past day. Currently, the US Securities and Exchange
Commission (SEC) is evaluating the Canary Litecoin ETF by inviting public
comments.

As the first altcoin ETF to reach this stage, the
market expects it to set a precedent for future cryptocurrency investment
products beyond Bitcoin and Ethereum. This development has fueled optimism in
the crypto market, with Litecoin prices surging in response.

According to a filing dated January 29, 2025, the SEC
has initiated a 21-day public comment period following the ETF proposal’s
publication in the Federal Register. This step followed Nasdaq’s submission of a 19b-4
filing on January 16, a necessary requirement in the approval process for
exchange-traded products.

Canary Capital’s Litecoin ETF is part of a broader
push to introduce alternative cryptocurrency ETFs into the US market. Just a week before this filing, Canary also applied
for an XRP-based ETF, demonstrating increased interest in expanding
institutional crypto investment options. Nasdaq’s involvement further
strengthens the case for Litecoin’s ETF approval.

If granted, Nasdaq will act as the listing exchange
for the investment product, positioning Litecoin as the first altcoin beyond
Bitcoin and Ethereum to gain regulatory recognition in the ETF space.

Following the SEC’s acknowledgment of the ETF
application, Litecoin’s price has experienced an upward momentum. According to
CoinMarketCap data, LTC soared 18% and 17% in the past day and week,
respectively, to trade at $133.The technical price indicators also show that
the digital asset has more prospects for upside.

Positive Market Sentiment

According to TradingView data, price had been on a
consolidation above the $108 since December 1. Price is now approaching the
$135 price resistance level, which has been tested twice since December 8.

Currently, LTC’s price is above the 50 and 200 moving
averages. The Relative Strength Index is currently 61. The SEC’s engagement
with the Litecoin ETF comes at a time when regulatory attitudes toward
cryptocurrencies appear to be shifting. Under the leadership of Acting Chair Mark Uyeda, the
agency has shown a willingness to explore a broader range of crypto investment
products.

A key move in this direction was the recent
appointment of Republican Commissioner Hester Peirce to lead a newly
established crypto task force. Peirce, known for her pro-crypto stance, has
been vocal about the need for regulatory clarity.

The SEC previously approved Bitcoin spot ETFs in
January 2024, followed by Ethereum ETFs later that year. These approvals set a
foundation for Litecoin’s current bid to enter the ETF market. The SEC has the
option to use the full 240-day review period before announcing a final ruling.



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