Key Insights
- Litecoin has just crossed a major milestone, with the SEC taking only two weeks to begin reviewing the spot Litecoin application from Canary Capital.
- The swiftness of this response has created a new wave of optimism in the market.
- Litecoin has a fair chance of becoming the third spot ETF approved asset in the US.
- This news has helped Litecoin become one of the best performing assets on the market.
- Litecoin could clear the $135 zone soon and target $350 or higher.
Litecoin’s performance has been impressive this week, especially after the SEC acknowledged the spot Litecoin ETF application from Canary Capital.
If the speculation around Litecoin is anything to go by, Litecoin could emerge as the third ETF-approved crypto asset in the US.
Here’s what this means and how it can affect this cryptocurrency.
SEC Acknowledges Spot LTC ETF Filing
Litecoin has been one of the best performing assets this week, even despite the wave of downturns that have shaken the market throughout the week.
This surge came mostly from the SEC’s acknowledgement of Canary Capital’s spot Litecoin ETF application.
The ETF in question was filed fairly recently on 16 January and is now under review by the SEC.
Put simply, the SEC has shown a willingness to review a Litecoin ETF filing only two weeks after it was submitted—a very rare occurrence that has sparked a wave of interest from Litecoin investors.
According to insights from Bloomberg analyst James Seyffart, the SEC’s recognition of this spot LTC ETF filing is a very significant one.
The analyst mentioned that this is the first time the SEC has taken a 19b-4 filing from an altcoin into consideration (assuming Ethereum isn’t an altcoin).
Previously, the SEC had only so much as considered ETF applications from Bitcoin and Litecoin, while rejecting other cryptocurrencies.
The latest move thus makes sense, considering how Litecoin was created from a Bitcoin fork.
How Has This Affected Litecoin’s Price?
The willingness of the SEC to consider these applications was enough to push Litecoin’s price to a high of $134 on 30 January.
This surge caused a current 12% price movement towards the upside in the last week, even despite Litecoin’s reversal towards $131.
According to analysts, the ongoing surge could be part of a larger uptrend.
Carl Moon for example, predicts that Litecoin could continue further towards a short-term target of $139, before going further up to $146.
Trader InvestingHaven believes that the Litecoin ETFs could attract more than $500 million in inflows.
However, Litecoin needs to break above the $132 zone (which is currently happening) to hit a bullish target of $384.
According to the charts, Litecoin is forming a cup and handle formation, and could be on its way towards clearing the $134- $139 zone, which had held it down since January 2022.
While the ongoing surge is partly driven by the ETF news, investors must understand that the review process can still take several months.
On some occasions, applications take up to 240 days. However, the acknowledgement from the SEC shows that the process could be even quicker than expected.
This speculation has already raised the odds of a Litecoin ETF approval on PolyMarket to nearly 90%, along with an notable increase in Litecoin’s daily active users to 374,000 DAAs:
Which means that Litecoin is currently outperforming assets like Avalanche and Optimism on all fronts.
