Litecoin (LTC) surged 13% in 24 hours, reaching a price of $129.39. This is linked to speculation about the approval of an exchange-traded fund (ETF) in the US in 2024.
Litecoin's Growth and Its Causes
The surge in Litecoin's value is tied to rumors that the US Securities and Exchange Commission (SEC) may approve its ETF in 2024.
Likelihood of ETF Approval
According to Bloomberg analyst data, the probability of a Litecoin ETF being approved in 2025 is estimated to be higher than any other crypto fund. Analysts argue that the S-1 and 19b-4 forms, key regulatory documents, have been filed and acknowledged by the SEC in advance. Litecoin potentially being considered a commodity rather than a security could further ease the approval process.
Market Response and Prospects
Litecoin trading volume skyrocketed with a 91.3% increase, recording $1.89 billion in only two hours. This contributed to a 13.19% increase in market cap, reaching $9.77 billion. The SEC has shown a more accommodative attitude towards approving crypto ETFs, suggesting Litecoin might be among the first to be approved.
The crypto market remains eager about the potential approval of new financial instruments. Litecoin shows positive trends amid such expectations, which may further encourage its institutional adoption.
