Following its price increase of more than 12% last week to around $71.50 on October 16, Litecoin (LTC) is attracting more and more interest. The move followed growing buzz about a planned Litecoin. exchange-traded funds (ETFs) proposal from Canary Capital Group.
Investors are excited as this ETF can provide a more direct method to invest in Litecoin, allowing market access for both individual and institutional participants.
The S-1 registration statement for the proposed ETF was filed on October 15, requesting permission from US regulators.
Many people consider this a transformative development. The approval could help legitimize Litecoin and facilitate new institutional investments.
‘Canary Capital Plans Litecoin ETF’ – @Blockworks_ https://t.co/ypLW4NDYBa
– Litecoin (@litecoin) October 17, 2024
Analytical Optimism
Meanwhile, Litecoin’s future prospects are bullish among cryptocurrency analysts. Although it has lagged recently, being around 80% below its all-time peak of $413.65 reached in May 2021, several analysts argue that the ETF could begin a new bull cycle.
28 Crypto Analyst Believes This ETFs, combined with a proper technical setup on the LTC/USD monthly chart, it leads to a huge jump in price. In fact, the chart shows that for many years, LTC has traded within the ascending channel, often being a signal for a possible breakout.
28 Crypto suggests that from a current price perspective, a price above $7,000 could very well be within reach, with long-term projections going well up to the vaunted $10,000 level.
Goal: $7,000 – $10,000 pic.twitter.com/uNCkM9WmWA
– 28 encryption (@NumberOfWealth) October 16, 2024
He posits that the price could approach the June resistance level of approximately $88, presenting a robust entry opportunity for investors.
Litecoin: Traders create strategies to make profits
The excitement goes beyond analysts. Open interest in the Litecoin futures market reached its highest point in three months, totaling $258.94 million on October 16. This increase means that traders are preparing for additional price increases, demonstrating strong upward momentum in the market.
Despite concerns such as Litecoin ETF regulatory issues, sentiment is positive. According to ETF expert James Seyffart, Litecoin has regulatory similarities to Bitcoin but could face liquidity issues in the US futures market and policy changes.
On the other hand, Steven McClurg, CEO of Canary, shows hope in the reliability and uses of LTC within the crypto ecosystem. Approved, this ETF could make LTC the third cryptocurrency with an ETF, despite its somewhat small market cap of $5 billion.
Featured image from Fast Company, chart from TradingView