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- Grayscale Litecoin Trust is reported to have raised $2.3 million from 242,900 shares in a private placement, sending the issued and outstanding to 24.1 million.
- Analysts have predicted that LTC could stage a parabolic run to hit $150 after it successfully breaches a crucial resistance level at $126.
A private placement of 242,900 new shares has been announced by Grayscale Litecoin Trust, with a total of $2.3 million raised by the crypto investment vehicle, according to reports. Fascinatingly, this forms part of the private placements to accredited investors with the latest issuance recorded on January 9, 2025. Based on an SEC filing, the number of shares issued and outstanding currently stands at 24.1 million.
From SEC filings, @Grayscale‘s Litecoin Trust announced the private placement of 242,900 new shares, which represent an aggregate of over 20K Litecoin $LTC, the cryptocurrency that underlies the Trust’s assets. This puts the total number of shares issued and outstanding to…— Litecoin Foundation ⚡️ (@LTCFoundation) January 15, 2025
In September 2024, 341,100 shares were also announced in a private placement, raising $1.95 million to take its issued and outstanding shares to 21,906,300.
With this happening, the underlying asset, Litecoin (LTC), has also embarked on a mini rally to hit a new month high of $130. At the time of writing, the price had receded to $119 with 24-hour gains of 16%. Mathematically, this has extended its weekly gains to 18% and sent the market cap to $9 billion.
Reasons for Litecoin’s (LTC) Rally
Exploring some of the reasons for this unexpected run, CNF analysts observed that the asset is currently benefiting from the broad market reaction to the upcoming US presidential inauguration.
Additionally, speculations towards the approval of a spot LTC Exchange Traded Fund (ETF) could have also triggered excitement within the market as Bloomberg analyst Eric Balchunas tips it for early approval. According to his colleague James Seyffart, one of the applicants, Canary Capital, has amended its S-1 filing, hinting at a fast-approaching approval.
Canary Capital just filed an amended S-1 for their Litecoin ETF filing. No guarantees — but this might be indicative of SEC engagement on the filing. Still no 19b-4 filing yet though.
This announcement was met with a significant surge in LTC trading volume by 300% to $1.62 billion. Fascinatingly, the trading volume was less than $450 million on January 15. Prior to that, LTC had recorded a significant surge in whale activities with 73 consecutive days of net flow, per a CNF report.
Delving into its on-chain activities, we found that large holders (balance of addresses holding between 1 million and 10 million of the coins) have increased their positions to 8.50 million from 8.28 million on January 14.
Looking at the market metrics, we found that the Chaikin Money Flow (CMF), which was hovering below zero, has risen to positive territory. According to analysts, a continuation of this trend could see LTC breaking the Fib 0.786. In this case, the asset could secure the $150 territory once it retouches the $126 level, per a CNF report.
Joining the Litecoin discussion, analyst Alan Santana believes that the asset could embark on a massive surge to hit $200. As mentioned by CNF in a report, the analyst pointed out that the current upsurge was started in November 2024.
