- Speculation about Litecoin ETF grows, fueled by its functional similarities to Bitcoin and potential ease of SEC approval.
- Litecoin’s price resilience and upward trend underscored by investor confidence, technical analysis suggests potential for further gains.
In January, the cryptocurrency world witnessed the launch of Bitcoin Exchange-Traded Funds (ETFs), an event that marked a new era for the industry. This development saw an influx of billions of dollars into Bitcoin, playing a key role in its price surge to unprecedented levels.
Following this success, there’s increasing chatter about the potential introduction of a Litecoin ETF, with industry observers noting a growing interest from institutional investors in such a product.
🚨SCOOP (with fixed ticker) 🙂: Hearing rumblings on the institutional level about possible interest in a Litecoin ETF. The logic is that because of $LTC functional similarities to $BTC, the @SECGov may be more inclined to approve it, possibly even more so than $ETH.
Last week,… https://t.co/nsrhE87OLm
— Eleanor Terrett (@EleanorTerrett) March 26, 2024
Rumors of a Litecoin ETF have been fueled by Eleanor Terrett, a Fox Business journalist, who shared insights about discussions at the institutional level regarding an interest in Litecoin ETFs. Terrett points out Litecoin’s similarities to Bitcoin as a reason it might be viewed more favorably by the Securities Exchange Commission (SEC) for approval compared to an Ethereum ETF.
You can read: Litecoin (LTC) Prepares for Major Upgrade: Price Forecast in the Spotlight
Adding credence to these rumors, Coinbase announced its plans to launch futures contracts for Dogecoin, Litecoin, and Bitcoin Cash that have been approved by the Commodity Futures Trading Commission (CFTC). This move is interpreted as an indication that regulatory bodies are beginning to see these cryptocurrencies as legitimate investment assets.
The regulatory landscape seems to be tilting in favor of Litecoin. The Department of Justice’s lawsuit against KuCoin saw the CFTC explicitly classifying Litecoin and Ethereum as commodities, bolstering the case for Litecoin’s suitability for an ETF.
However, the community is still divided on what the introduction of altcoin ETFs means for the market’s future.
You may be interested in: Litecoin (LTC) Hints at a Major Protocol Update: Potential Price Impact Analysis
Following Bitcoin ETFs’ success, the question arises whether Wall Street will extend its interest to altcoin ETFs. Litecoin has shown resilience and an upward trend in its price, approaching the $100 mark after a period of decline.
Trading around $95, Litecoin’s performance, supported by investor confidence as indicated by the bullish Reserve Risk metric and a favorable Relative Strength Index (RSI), suggests potential for further price increases.
Technical analysis points to Litecoin establishing solid support at the 61.8% Fibonacci retracement level, indicating a strong base for potential upward movement. Overcoming the $102 resistance level could catalyze further gains, potentially pushing Litecoin’s price beyond $100.
Register at Binance