Litecoin (LTC) Price Rallies 12% as Canary Litecoin ETF Filing Gains SEC Recognition

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The SEC has officially acknowledged the Canary Litecoin ETF filing, marking a major step toward potential approval. This makes it the first altcoin ETF to reach this stage after Bitcoin ETFs and Ethereum ETFs secured approval in 2024. The agency is now accepting public comments before deciding whether to approve or reject the ETF.

 

Quick Take

  • The U.S. Securities and Exchange Commission (SEC) has acknowledged Nasdaq's 19b-4 filing for the Canary Litecoin ETF, opening a 21-day public comment period.

  • Litecoin’s price surged over 10%, reaching $124.80 following ETF speculation and increased institutional interest.

  • Grayscale’s LTC holdings have expanded sharply, signaling growing confidence in Litecoin as an institutional asset.

  • Litecoin’s hashrate has hit an all-time high (ATH) of 2.54 PH/s, indicating heightened network security and miner confidence.

  • Analysts predict a potential bullish breakout, with price targets of $140–$160 in the short term if momentum persists.

SEC’s Next Steps for Canary Litecoin ETF

Nasdaq initially filed the 19b-4 form for the Canary Litecoin ETF on January 16, 2025. This form is the second stage in the ETF approval process, which follows the S-1 registration statement submitted in October 2024. The ETF aims to simplify Litecoin investment by allowing investors to gain exposure through traditional brokerage accounts, eliminating the need for direct cryptocurrency custody.

 

Source: X

 

According to Bloomberg ETF analyst Eric Balchunas, this is the most advanced altcoin ETF filing to date. He also noted that the SEC could either take the full 240-day review period or approve the ETF more rapidly.

 

Grayscale Expands Litecoin Holdings to 2.1M by January 2025

Grayscale’s LTC holdings over the past year | Source: CoinGlass

 

As speculation over a Litecoin ETF approval grows, major institutional investors have been increasing their exposure to LTC. Grayscale has aggressively expanded its Litecoin holdings, growing from 1.4 million LTC in February 2024 to over 2.1 million LTC by January 2025. This accumulation suggests heightened institutional confidence in Litecoin’s long-term value.

 

Meanwhile, asset manager Monochrome has submitted an application for a Litecoin ETF (LTCC) in Australia, which, if approved, would provide regulated access to Litecoin for Australian investors. This development highlights growing global demand for regulated Litecoin investment products.

 

Litecoin’s Hashrate Hits All-Time High of 2.54 PH/s

Litecoin hashing rate | Source: CoinWarz

 

In another bullish signal, Litecoin’s network hashrate has reached a record 2.54 PH/s. This significant growth indicates increasing mining activity, enhancing network security and reinforcing miner trust in Litecoin’s future.

 

Historically, hashrate increases have correlated with price surges, as rising miner participation reflects strong network fundamentals. With the recent spike in hashrate, analysts suggest Litecoin’s price momentum may continue upward if market conditions remain favorable.

 

Read more: How to Mine Litecoins: The Ultimate Guide to Litecoin Mining

 

Litecoin Price Outlook: Bullish Breakout to $160+?

LTC/USDT price chart | Source: KuCoin 

 

Following the ETF news, Litecoin surged over 12%, reaching a high of $128 The rally pushed its market cap to $9.75 billion, with a 24-hour trading volume of $1.2 billion.

 

Technical indicators point toward further bullish momentum:

 

  • Relative Strength Index (RSI) at 53.52, indicating strengthening bullish pressure.

  • MACD shows a bullish crossover, supporting a potential price increase.

  • Resistance levels to watch: $132 and $140, with breakout targets at $160+ if upward momentum continues.

  • Support level: $97—a break below this could trigger a retracement.

Historically, Litecoin has exhibited delayed but explosive breakouts following accumulation phases. If market trends align, LTC could first test $230, then $760, before possibly reaching $2,600 in the long term, based on previous cycle trends.

 

Can Litecoin ETFs Follow Bitcoin and Ethereum ETFs’ Success?

The Canary Litecoin ETF is now one of the most anticipated developments in the crypto industry. If approved, it could drive significant institutional inflows, increase market liquidity, and potentially establish Litecoin as a premier institutional-grade asset alongside Bitcoin and Ethereum.

 

With Litecoin’s price rallying, hashrate surging, and institutional accumulation rising, all signs point to growing investor confidence. While regulatory uncertainty remains, a positive outcome for the ETF could push Litecoin into a new era of mainstream adoption and price appreciation.

 

As the SEC’s 21-day public comment period progresses, investors will be closely watching regulatory developments and market reactions. Stay tuned for further updates on Litecoin’s ETF journey and potential market impact.

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