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Litecoin (LTC) has shown a steep climb and is now in the spotlight with the news of a potential approval for the first exchange-traded fund (ETF). According to the market cap & daily volume, over the last two weeks, it has seen a 46% hike in its market capitalization and growth from $2.8 bln in late August 2024 to $9.6 billion per day. According to analysts, this move could be attributed to the prospects of the proposed Litecoin ETF.
CoinShares, a financial firm, has recently officially filed a request to launch a Litecoin-based exchange-traded fund on Nasdaq, as reported by CNF. The proposal has already been presented to the U.S. Securities and Exchange Commission (SEC) for consideration, which has brightened the spirits of investors. It is expected that the ETF will be approved before the end of 2025, with a likelihood of around 90%.
Institutional Interest and Market Implications
A Litecoin ETF would allow institutional investors to invest in LTC without the need to deal directly with private keys or exchanges. The increasing acceptance of Bitcoin ETFs early in 2024 paved the way for this, and now Litecoin appears to be the next likely choice.
The ETF listing process continued as the Canary’s offered Litecoin ETF went live on the Depository Trust & Clearing Corporation (DTCC) platform using the symbol LTCC. According to Bloomberg senior ETF analyst Eric Balchunas, while this does not suggest approval now, it shows that issuers are getting ready for trading.
Doesnt mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is. We still at 90% odds. $LTCC https://t.co/ugQgsO9fIB
— Eric Balchunas (@EricBalchunas) February 21, 2025
Nate Geraci, the President of the ETF Store, said that this was similar to previous processes of Bitcoin ETF, and there might be approval shortly. If passed, the Litecoin ETF could open the door for more cryptocurrency ETFs and potentially for the SOL, XRP, and LINK tokens. This will further open the door for the expansion of digital currencies within conventional financial markets.
Market Analysts Predict Strong LTC Performance
Litecoin is still positively viewed by market analysts as to the further tendencies of its price increase. A popular crypto trader, Bluntz, recently posted a positive outlook on X (previously Twitter). He stated that LTC is in an ABC corrective wave against the US dollar, and the BTC pair shows a bullish swing failure pattern (SFP).
In his forecast based on the Elliott Wave theory, Bluntz anticipates that Litecoin will rise above the $147 level, possibly use it for support, and then reach the $180 level. The analyst opines that when the market anticipates an ETF approval, it actually contributes to the direction and strength of Litecoin.
Peter Brandt, a veteran trader, concurred when he said that Litecoin has the potential to become a force to reckon with in the market. His analysis was made, however, when LTC hit a price above $100 in December.
With the approval of a Litecoin ETF by the SEC, more institutions will likely invest in this crypto. The target investors would be able to transact in Litecoin through a regulated exchange without directly dealing with the private key or the crypto wallet. This could lead to more trading and such cryptocurrencies reaching households as a result of their easy availability.
