Litecoin (LTC) has experienced a strong rally, climbing over 11% to reach $127.51. The surge follows the U.S. Securities and Exchange Commission’s (SEC) formal acknowledgment of an exchange-traded fund (ETF) application by Canary Capital. This development has significantly bolstered investor confidence and increased trading activity.
SEC’s Review Boosts Market Optimism
The SEC’s request for public comments on the proposed ETF marks a critical step in the approval process. In its filing, the regulatory body described Litecoin as “very similar” to Bitcoin, emphasizing its decentralized structure:
“No single entity owns or operates the Litecoin Network, the infrastructure of which is collectively maintained by a decentralized user base.”
This statement further legitimizes Litecoin’s status as a leading cryptocurrency and highlights its fundamental similarities to Bitcoin.
Analysts and Investors Show Strong Support
Market analysts view this development as a major milestone. ETF expert Eric Balchunas noted that the Canary Capital ETF filing is “by far the furthest along checking all the boxes,” particularly when compared to past spot Ethereum-based ETF applications.
Large investors, often referred to as “whales” and “sharks,” have also taken notice. On-chain data reveals that these major holders have accumulated approximately 250,000 LTC—worth around $30 million—over the past week. This accumulation signals strong confidence in Litecoin’s long-term potential.
Market Sentiment and Broader Crypto Rally
Beyond the ETF news, overall market sentiment has played a crucial role in Litecoin’s price surge. The widely followed crypto fear and greed index has shifted from a fear level of 38 last week to a greed reading of 77, reflecting a growing bullish outlook.
Bitcoin’s recent rise above $67,000 has also contributed to the rally, lifting other major altcoins like Ethereum and Solana alongside Litecoin.
At the time of writing, Litecoin is trading at $133.17, having reached an intraday high of $139.17 and a low of $130.54. Investors are closely watching the SEC’s review process, as a potential Litecoin ETF approval could drive further institutional investment and price appreciation.
