The Litecoin price has increased by over 5% in the last 24 hours, following the excitement about the launch of a Litecoin Spot ETF by asset managers Grayscale and Coinshares. They are joining Canary, which applied for a similar fund a few months ago.
As such, analysts believe this exchange-traded fund has a better chance of approval compared to others like Solana (SOL) and Ripple (XRP). If approved, it could become the third ETF after Bitcoin and Ether.
This excitement has also caused a 21.53% increase in trading volume over the last 24 hours, which now stands at $1.23 billion. Litecoin is currently the 12th highest coin in trading volume among the top 100 coins on CoinGecko.
If Grayscale and Coinshares successfully launch the Litecoin ETF in the United States, it could boost both institutional and retail interest in Litecoin, leading to an increase in the LTC price.
What to Know About Litecoin ETF Applications
On January 24, Grayscale announced that it had filed an application for a Litecoin ETF with the New York Stock Exchange (NYSE). Additionally, the NYSE filed the 19b-4 paperwork for the “Grayscale Litecoin Trust” on Grayscale’s behalf and the 19b-4 filing for Grayscale Solana Trust. Grayscale’s submissions contain provisions for converting the trusts into spot ETFs.
Simultaneously, Coinshares submitted an S-1 registration form to the US Securities and Exchange Commission (SEC) to launch the COINSHARES LITECOIN ETF. This spot exchange-traded fund provides investors with exposure to LTC cryptocurrency.
These applications came just four days after the swearing-in of the first American crypto President, Donald Trump, who promised more common-sense crypto market regulation during his just-started four-year presidential tenure.
Interestingly, since Friday, various companies have filed a wave of applications for new exchange-traded funds. These applications include Solana ETFs and XRP ETFs, which are anticipated to be the next approved in the US.
How Would LTC Price React to an ETF Launch?
While Litecoin ETF applications haven’t been approved yet by the United States Securities Exchange Commission (SEC), there are already increased activities in the Litecoin community.
At present, Litecoin (LTC) is changing hands for $123.54, with many crypto analysts predicting more upside potential in the upcoming weeks. Technical analysts and YouTuber AMCrypto suggest that LTC’s price will likely reach $200 by April 2025.
The tweet mentions CoinShares’ application for a Litecoin spot ETF, showing that institutional investors are taking an interest in $LTC. He also posted a chart showing a pattern suggesting prices might go up. If the ETF is approved, it could boost market confidence and raise $LTC’s price.
Similarly, on January 25, the Litecoin network reached a key milestone, with its hashrate reaching an all-time high of 2.24 petahashes per second (PH/s) at block 2,833,807. This milestone indicates more interest and activity among miners, which means more computing power is being used to secure the network and process transactions.
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