Litecoin ETF Hype Hits The Market

Litecoin’s resurgence has sparked fresh enthusiasm as rumors of potential ETF approval swirl across the crypto space. Adding weight to the speculation are LTC’s functional similarities to Bitcoin, which might pave the way for smoother regulatory approval than Ethereum. Recent developments concerning LTC have steered institutional sentiment toward the token.

Just a week ago, Coinbase filed applications with the CFTC seeking approval to launch futures trading on Litecoin, Dogecoin [DOGE], and Bitcoin Cash [BCH] on April 1. Surprisingly, the submissions made on March 7 went unnoticed. A total of three letters were sent addressing Christopher J. Kirkpatrick, Secretary of the Commission.

SCOOP (with fixed ticker): Hearing rumblings on the institutional level about possible interest in a Litecoin ETF. The logic is that because of LTC’s functional similarities to BTC, the SECGov may be more inclined to approve it, possibly even more so than ETH. Last week, Coinbase Derivatives announced plans to launch CFTC-approved futures contracts for Dogecoin, Litecoin, and Bitcoin Cash on April 1st (next Monday).

The futures contracts are set to begin trading by April 1. If approved by the CFTC, these contracts will offer investors new opportunities to engage with these popular cryptocurrencies in a regulated environment. Moreover, the crypto exchange is leveraging self-certification with the U.S. CFTC to quickly list and ensure compliance. All three cryptocurrencies are derived from Bitcoin and are considered commodities by the SEC.

In January, rumors for an exchange-traded fund on the leading altcoin began to gather steam after Grayscale Investments, the world’s largest digital asset manager, announced that its single asset products, including Grayscale Litecoin Trust [LTCN], have become SEC reporting companies. This move suggests a growing institutional interest in LTC as a viable investment option.

Litecoin Breakout Achieved, Next Hurdle At $100

Price-wise, the 21-ranked token is displaying signs of a potential price breakout after remaining stagnant for a while. Alongside a daily gain of 9%, the token ecosystem is garnering accelerated community interest, with a 314% surge in the number of creators posting about LTC, per LunarCrush.

Meanwhile, in the 1-week timeframe, the trendline breakout has already occurred. However, experts caution that a potential trend reversal might occur if buying pressure weakens, as a strong supply around $100 looms large. With recovery momentum rising, LTC is anticipated to breach the $100 resistance level. It is also worth noting that a retest at a $100 breakout could temporarily stall bullish momentum.