Litecoin ETF Prospects Trigger Massive Surge In LTC Derivatives Volume

Litecoin was one of the biggest gainers in the list of top 50 cryptocurrencies by marketcap in the last 24 hours.

This was not by fluke but rather a consequence of two major factors. The first was the fact that Litecoin just broke through a descending resistance trend line.

The latter is part of a short term wedge pattern that has been playing out since late November last year.

LTC price was up by 40.50% from its $92.51 weekly low on Monday, 13 January, to its highest weekly price so far at $114.16.

Notably, this price spike occurred 15 January, during which a massive wave of demand was observed.

The wave of demand was enough to break through the aforementioned descending resistance, contributing to even more investor interest. Litecoin exchanged hands at $123.13 at press time.

– Advertisement –

Speculative Litecoin Accumulation Escalates Courtesy of ETF Hype

Litecoin could be the next major cryptocurrency to receive ETFs regulatory green light.

Reports revealed that the Nasdaq Stock Market recently submitted a 19b-4 filing with the SEC. This filing seeks approval the Canary Litecoin ETF.

The ETF-related development may have contributed a great deal to the prevailing LTC demand.

According to Coinglass, Litecoin derivatives volume grew by 577.76% to $3.70 billion in the last 24 hours.

LTC open interest clocked in at $676.46 million during the same 24-hour period after a 47.64% uptick. Spot trading demand also received a substantial boost, growing from 5.59 million in inflows on 14 January to $26.11 million two days later.

This latest spike in positive flows was the second highest spot demand surge observed in the last 10 months.

The highest spike was observed on 11 November which was right at the start of Litecoin’s November rally. The spot flows confirmed that this could be the start of another sizable LTC rally.

LTC Long Term Prospects Just Got a Whole Lot Better

The 2024 Bitcoin performance revealed the impact of institutional demand on its price action.

Robust ETF flows contributed a great deal to BTC’s impressive bullish performance especially in the second half of the year.

Ethereum ETFs have also been quite active as far as demand is concerned. Analysts anticipate a similar outcome once Litecoin ETFs are approved.

Preliminary reports indicate that the SEC has a 240-day window to conduct a review of the filing.

Note that the time frame also means that there is a significant amount of time before the SEC’s decision. Also, an approval is not necessarily guaranteed.

For now, Litecoin is riding on the hype around these developments considering its impressive price action so far this week.

Litecoin ETF approvals would likely be a mega bull run event once institutional liquidity starts flowing in. But how high can it reasonably go?

While the heights of its potential are unknown, some analysts believe that it could go as high as $1,000 this quarter.

New all-time highs could thus be around the corner. Speaking of, Litecoin’s hash rate just recorded a new TH at 2.14 PH/s.