After the price increase of more than 12% in the last week At approximately $71.50 on October 16, Litecoin (LTC) is attracting more and more interest. The action followed a growing rumor about a planned Litecoin. exchange-traded fund (ETF) Proposal from Canary Capital Group.
Investors are excited as this ETF may provide a more direct method of investing in Litecoin, allowing 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.
Many people consider this a transformative breakthrough. Approval could 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 optimistic among cryptocurrency analysts. While it has lagged recently, sitting roughly 80% below its all-time high of $413.65 reached in May 2021, several analysts maintain that the ETF could begin a new bull cycle.
28 Crypto Analyst Believes This ETF, combined with a proper technical setup on the LTC/USD monthly chart, it leads to a big jump in price. In reality, the chart shows that for many years, LTC has traded within the ascending channel, often being a sign of a possible breakout.
28 Crypto hints that, from the current price perspective, a price above $7,000 could well be within striking distance, with long-term projections even reaching the vaunted $10,000 level.
Goal: $7000 – $10,000 pic.twitter.com/uNCkM9WmWA
– 28 Crypto (@NumberOfWealth) October 16, 2024
It posits that the price may approach the June resistance level of around $88, presenting a solid entry opportunity for investors.
Litecoin: Traders strategize to make profits
The enthusiasm extends beyond analysts. Open interest in the Litecoin futures market has risen to its highest point in three months, rising to $258.94 million as of October 16. This increase means that traders are preparing for additional price increases, demonstrating strong bullish momentum in the market.
Despite concerns such as Litecoin ETF regulatory issues, sentiment is positive. According to ETF specialist James Seyffart, Litecoin has regulatory similarities with Bitcoin, but may 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 value of $5 billion.
Featured image from Fast Company, TradingView chart
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