Litecoin (LTC) experienced a significant price jump of 7.69% in the last 24 hours, reaching around $71.45 on October 16th. The surge was fueled by excitement over a potential spot Litecoin ETF filing by asset manager Canary Capital. According to S-1 filings submitted on October 15th, the asset manager has registered documents with US regulators seeking approval for a spot Litecoin ETF.
This proposed ETF aims to directly hold Litecoin, mirroring the performance of the CoinDesk Litecoin Price Index (LTX). The potential arrival of a spot Litecoin ETF could be a game-changer for institutional investors. By offering a more direct exposure option, the ETF could pave the way for increased institutional involvement in the Litecoin market, further legitimizing the cryptocurrency.
Analysts are bullish on Litecoin’s future. Several analysts believe the ETF, coupled with a bullish technical scenario on the LTC/USD monthly chart, could trigger a significant price upswing. The chart suggests that LTC has been trading within an ascending parallel channel for several years, a historical indicator that often precedes a breakout.
28 Crypto highlights the potential for a surge towards the $200-$300 range, with a long-term Fibonacci extension target exceeding $2,000. Analyst Investing Haven echoes the bullish sentiment, suggesting that LTC’s current trading range presents a prime “buy the dip” opportunity. He argues that the price is likely to head towards its June resistance target of around $88, potentially offering a solid long-term entry point for investors.
The positive sentiment surrounding Canary Capital’s ETF filing extends beyond analyst projections. Open interest in the Litecoin futures market climbed to its highest level in three months, reaching $258.94 million on October 16th, compared to $232 million the previous day. This significant rise in open interest signals that traders are positioning themselves for further price increases, a strong indication of bullish momentum.
Furthermore, the market’s positive funding rates, currently at 0.262% per week, suggest that traders are willing to pay a premium to maintain long positions on LTC. This reinforces the upward trend and reflects growing confidence in the cryptocurrency’s future.
