Litecoin (COIN: $LTC) has had a tough run in 2024. While it started the year on a positive note, gaining over 16% in the first quarter to over $110 per coin, it lost most of those gains in April. Despite falling below $50 in August, the coin has recent began rising, and cold be headed into a rally.
SEC Filing Raises Hope For Litecoin
On October 16, 2024, Canary Capital, a Wall Street asset manager, filed for a spot Litecoin ETF in the US. If approved, it would provide US institutional investors with direct exposure to LTC.
The filing states that the ETF would track the CoinDesk Litecoin Price Index, which is calculated using a “weighting algorithm to the price and trading volume data for the immediately preceding 24-hour period.”
Following the application, the SEC could either reject or approve the filing within 240 days. As such, approval could be made in June 2025.
The filing comes less than seven days after Canary Capital applied for a spot XRP ETF, following an application by Bitwise for an XRP ETF on October 1, 2024.
The SEC filing comes after what has been a largely successful year for crypto ETFs in the US. Since several of them launch in January of 2024, they have seen billions of dollars poured into the collectively. If it is approved, it could improve liquidity, and stabilize the price of LTC for investors.
One reason why the application could succeed is that Litecoin and Bitcoin are quite similar. Since LTC is a fork of Bitcoin, it is unlikely to face any technical challenges during the approval process.
LTC Price Performance
After dipping to a low of $49.80 in late August, Litecoin has maintained its price at around the $65 mark in recent weeks. However, following the ETF application in mid-October, Litecoin has maintained its price above $70 for the first time since July 2024, when the price fell by double digits.
Is Now A Good Time to Invest In Litecoin (LTC)?
Litecoin is one of the oldest blockchain, recently hitting 13 years, which is nearly as old as Bitcoin. It has also seen other milestones that include 77 millions transactions in 2024, a 100% uptime, and privacy improvements, which shows it has a thriving community around it. Today, it is the 21st biggest blockchain network by market cap.
While the SEC filing could help boost the price of Litecoin in the long-term, its short impact in uncertain. For one, the SEC could reject the application or choose to delay it until June 2024. The other surprise could be that the SEC establishes a trend where it approves crypto ETFs in January of 2025, like it did this year. In such a scenario, LTC holders could potentially experience a major spike in prices.
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