Litecoin soared to a two-month high following news that a spot Litecoin ETF has been filed with the U.S. Securities and Exchange Commission.
Litecoin (LTC) rose 7.2% from the previous day to trade at $71.52 on Wednesday, October 16th, its highest price since the end of July.
LTC 24-hour price chart – October 16 | Source: crypto.news
This recent rally reflects a 15% rise from the monthly low, increasing Litecoin’s market cap from $4.6 billion on October 3 to more than $5.36 billion at the time of writing.
This upward momentum was reflected in the futures market, with open interest in LTC futures contracts hitting a multi-month high of $170 million. This increase in open interest indicates strong investor demand and increased engagement with the asset.
ETF application accelerates Litecoin’s rise
The main catalyst for Litecoin’s surge was the announcement that Canary Capital, an investment firm specializing in cryptocurrencies, had filed with the SEC for a Spotlightcoin exchange-traded fund. If approved, this ETF will allow both retail and institutional investors to have direct access to Litecoin, making it easier to invest in the cryptocurrency without the need to directly hold assets.
Since the announcement, the token has surged more than 9% to hit a two-month high of $72.79.
In addition to the ETF news, broader market sentiment influenced Litecoin’s price rise.
The Cryptocurrency Fear and Greed Index, which is widely followed as an indicator of market sentiment, rose from last week’s fear level of 38 to a greed index of 77. This change reflects an improved outlook for the overall crypto market and is further supported by the rise in Bitcoin. (BTC) recently surpassed $67,000, which also brought gains to other altcoins such as Ethereum (ETH) and Solana (SOL).
Historically, altcoins like Litecoin tend to perform well during periods of heightened optimism and market confidence in Bitcoin. According to data from CoinMarketCap, community sentiment regarding Litecoin was particularly positive, with X traders expressing a similar outlook.
According to analyst ZAYK Charts, LTC has broken out of a descending channel on the daily chart, a pattern that typically indicates a bullish reversal. ZAYK currently expects the token to rise to $100 in the near term, which would represent a 28.5% increase from the current price.
A pseudonymous trader revealed that he is accumulating 0.1% of Litecoin’s total supply as part of a long-term investment strategy. The investor pointed to Litecoin’s durability and cited the Lindy effect (the theory that the longer an asset lasts, the more likely it is to survive) as the basis for his confidence. They also believe that once the current “memecoin” bubble bursts, capital will return to established cryptocurrencies like Litecoin, which have stood the test of time.
