Following its price increase of more than 12% in the past week to roughly $71.50 on October 16, Litecoin (LTC) is attracting more and more interest. The action followed growing buzz about a planned Litecoin exchange-traded fund (ETF) proposal by Canary Capital Group.
Investors are excited, since this ETF may provide a more direct method for investing in Litecoin, allowing both individual and institutional participants to access the market.
The S-1 registration statement for the proposed ETF was filed on October 15, requesting permission from US regulators.
Numerous individuals regard this as a transformative development. Approval might help legitimize Litecoin and facilitate further institutional investment.
‘Canary Capital plots Litecoin ETF’ – @Blockworks_ https://t.co/ypLW4NDYBa
— Litecoin (@litecoin) October 17, 2024
Analytical Optimism
Meanwhile, Litecoin’s future prospects are bullish among cryptocurrency analysts. While it has lagged recently, being some 80% below its all-time peak of $413.65 reached in May 2021, several analysts argue that the ETF might initiate a new bull cycle.
Analyst 28 Crypto believes this ETF, combined with a suitable technical setup on the LTC/USD monthly chart, leads to a large jump in price. Actually, the chart shows that for many years, the LTC has traded within the upward channel while often being a signal for a possible break-out.
28 Crypto hints that, from the current price perspective, a price upwards of $7,000 could well be within striking distance with long-term projections even going well to the vaunted $10,000 level.
Target: $7000 – $10.000 pic.twitter.com/uNCkM9WmWA
— 28 Crypto (@NumberOfWealth) October 16, 2024
He posits that the price may approach the June resistance level of approximately $88, presenting a robust entry opportunity for investors.
Litecoin: Traders Strategize For Profits
The excitement extends beyond analysts. The open interest in the Litecoin futures market has surged to its highest point in three months, amounting to $258.94 million as of October 16. This surge signifies that traders are preparing for additional price rises, demonstrating robust bullish momentum in the market.
Despite concerns like Litecoin’s ETF’s regulatory issues, sentiment is positive. According to ETF specialist James Seyffart, Litecoin has regulatory similarities to Bitcoin but may face liquidity issues in the US futures market and policy changes.
On the other hand, Steven McClurg, Canary’s CEO, shows hope in LTC’s dependability and uses inside the crypto ecosystem. Approved, this ETF might make LTC as the third cryptocurrency with an ETF despite its somewhat small market value of $5 billion.
Featured image from Fast Company, chart from TradingView