Litecoin ETF Rumors Fuel 10% Surge, Institutions Hint At Interest


Rumors regarding a potential spot Litecoin (LTC) Exchange-Traded Fund (ETF) have sparked a significant price surge, with the digital asset gaining 10% amid speculation of institutional interest. Fox Business journalist Eleanor Terrett, through a post on X (formerly Twitter), unveiled insights suggesting growing institutional intrigue towards a Litecoin ETF.

Terrett shared, 鈥淪COOP: 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 SEC may be more inclined to approve it, possibly even more so than ETH.鈥

Why A Spot Litecoin ETF Could Be Possible

This statement comes at a pivotal time as the crypto market continues to navigate through regulatory uncertainties and growing interest from traditional financial institutions. Adding to the buzz, Terrett highlighted recent actions by the Coinbase Derivatives to launch futures contracts for Dogecoin, Litecoin, and Bitcoin Cash, all set to begin on April 1st, 2024.

These futures contracts, as detailed, are part of Coinbase鈥檚 strategic move to diversify its offerings, leveraging the self-certification approach under CFTC Regulation 40.2(a). This approach permits entities to launch new products without the explicit approval of the CFTC, provided they comply with the Commodity Exchange Act and accompanying regulations.

Moreover, the recent classification of Ethereum (ETH) and Litecoin (LTC) as commodities by the Commodity Futures Trading Commission (CFTC) in its lawsuit against KuCoin has added another layer of legitimacy to the discourse surrounding Litecoin鈥檚 regulatory standing. The CFTC鈥檚 action emphasizes its view of certain cryptocurrencies as commodities.

Amidst these regulatory clarifications and developments, discussions about the potential approval of a spot Litecoin ETF have intensified. Luke Martin, a renowned crypto analyst, echoed the sentiment, suggesting that the approval of an Ethereum ETF could pave the way for other 鈥渙ld altcoins,鈥 like Litecoin, which may have a stronger case for not being classified as securities.

He stated, 鈥淲hen the ETH ETF launches and passes, the question then becomes especially with the SEC鈥檚 track record versus tokens [鈥 there鈥檚 other dinosaur old altcoins which you can make almost a stronger case [that] they鈥檙e not a security, one that sounds ridiculous but if you think deeply about it, it鈥檚 true 鈥 Dogecoin you could probably prove easier is not a security than ETH. Why wouldn鈥檛 they launch Litecoin, Dogecoin?鈥

Adding to the momentum, Alan Austin, Managing Director at the Litecoin Foundation, expressed enthusiasm about the prospects of a spot Litecoin ETF, stating, 鈥淚鈥檒l say it again, love or hate ETFs, the first company to launch a Litecoin ETF is going to crush it!鈥

LTC Price Is Lagging Behind

Despite the current buzz, Litecoin鈥檚 price analysis indicates that it is still down by 77% from it鈥檚 all-time high in May 2021, signaling a bearish trend in comparison to other cryptocurrencies that have already surpassed their 2021 peaks. Nevertheless, a recent break above the 200-week EMA has ignited a glimmer of bullish momentum.

Overcoming the red resistance zone between $102 and $106 could be critical for Litecoin to reach new heights, with the $128 mark (0.236 Fibonacci retracement level) as a potential near-term target.

LITC price, 1-week chart | Source: LTCUSD on TradingView.com

Featured image created with DALL路E, chart from TradingView.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.





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