Why Is Litecoin (LTC) Soaring? ETF Optimism Triggers 19% Price Rally ⋅ Crypto World Echo
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, LTCsoared nearly 19% in the past day. Currently, the US Securities and ExchangeCommission (SEC) is evaluating the Canary Litecoin ETF by inviting publiccomments.
As the first altcoin ETF to reach this stage, themarket expects it to set a precedent for future cryptocurrency investmentproducts beyond Bitcoin and Ethereum. This development has fueled optimism inthe crypto market, with Litecoin prices surging in response.
Step in SEC’s Decision Process
According to a filing dated January 29, 2025, the SEChas initiated a 21-day public comment period following the ETF proposal’spublication in the Federal Register.
This step followed Nasdaq’s submission of a 19b-4filing on January 16, a necessary requirement in the approval process forexchange-traded products. Canary Capital’s Litecoin ETF is part of a broaderpush to introduce alternative cryptocurrency ETFs into the US market.
Just a week before this filing, Canary also appliedfor an XRP-based ETF, demonstrating increased interest in expandinginstitutional crypto investment options. Nasdaq’s involvement furtherstrengthens the case for Litecoin’s ETF approval.
If granted, Nasdaq will act as the listing exchangefor the investment product, positioning Litecoin as the first altcoin beyondBitcoin and Ethereum to gain regulatory recognition in the ETF space.
Following the SEC’s acknowledgment of the ETFapplication, Litecoin’s price has experienced an upward momentum. According toCoinMarketCap data, LTC soared 18% and 17% in the past day and week,respectively, to trade at $133.The technical price indicators also show thatthe digital asset has more prospects for upside.
Positive Market Sentiment
According to TradingView data, price had been on aconsolidation 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 movingaverages. The Relative Strength Index is currently 61. The SEC’s engagementwith the Litecoin ETF comes at a time when regulatory attitudes towardcryptocurrencies appear to be shifting. Under the leadership of Acting Chair Mark Uyeda, theagency has shown a willingness to explore a broader range of crypto investmentproducts.
A key move in this direction was the recentappointment of Republican Commissioner Hester Peirce to lead a newlyestablished crypto task force. Peirce, known for her pro-crypto stance, hasbeen vocal about the need for regulatory clarity.
The SEC previously approved Bitcoin spot ETFs inJanuary 2024, followed by Ethereum ETFs later that year. These approvals set afoundation for Litecoin’s current bid to enter the ETF market. The SEC has theoption to use the full 240-day review period before announcing a final ruling.
This article was written by Jared Kirui at www.financemagnates.com.
