After the price increase of more than 12% in the past week to around $71.50 on October 16, Litecoin (LTC) is attracting increasing interest. The action followed growing rumors about a planned Litecoin exchange traded fund (ETF) proposal from Canary Capital Group.
Investors are excited because this ETF may offer a more direct method to invest in Litecoin, giving both individual and institutional participants access to the market.
The S-1 registration statement for the proposed ETF was filed on October 15, seeking approval from US regulators.
Many people see this as a transformative development. Approval could help legitimize Litecoin and facilitate further institutional investment.
‘Canary Capital Plots Litecoin ETF’ – @Blokwerk_ https://t.co/ypLW4NDYBa
— Litecoin (@litecoin) October 17, 2024
Analytical optimism
Meanwhile, Litecoin’s future prospects are optimistic among cryptocurrency analysts. Although the ETF has lagged lately, some 80% below the all-time high of $413.65 reached in May 2021, several analysts argue that the ETF could initiate a new bull cycle.
Analyst 28 Crypto believes this ETF, combined with a suitable technical setup on the LTC/USD monthly chart, this leads to a big price jump. In fact, the chart shows that the LTC has been trading in the upward channel for years, when this has often been a signal of a possible breakout.
28 Crypto indicates that, from the current price perspective, a price of over $7,000 could be within reasonable reach, with long-term projections well reaching the vaunted $10,000 level.
Goal: $7,000 – $10,000 pic.twitter.com/uNCkM9WmWA
— 28 Crypto (@NumberOfWealth) October 16, 2024
He states that the price could approach the June resistance level of around $88, providing a robust entry opportunity for investors.
Litecoin: traders choose profit
The excitement extends beyond analysts. Open interest in the Litecoin futures market has risen to a three-month high, reaching $258.94 million on October 16. This increase means traders are preparing for additional price increases, demonstrating robust bullish momentum in the market.
Despite concerns about the regulatory issues of Litecoin’s ETF, sentiment is positive. According to ETF specialist James Seyffart, Litecoin has regulatory similarities with Bitcoin, but could face liquidity issues in the US futures market and policy changes.
On the other hand, Steven McClurg, the CEO of Canary, shows hope for the reliability and use of LTC within the crypto ecosystem. If this ETF is approved, LTC could become the third cryptocurrency with an ETF, despite its somewhat small market cap of $5 billion.
Featured image of Fast Company, chart from TradingView
