Litecoin's price surged on January 30 amid expectations that the Securities and Exchange Commission (SEC) will approve a spot ETF.
Market anticipates Litecoin ETF approval
Litecoin jumped more than 12%, reaching an intraday high of $135. It has soared 165% since 2024. Polymarket odds of a spot LTC ETF approval rose to 86% after the SEC acknowledged Canary's LTC ETF application and opened it for public comment.
Why the SEC might approve
The SEC is expected to approve the fund because Litecoin is similar to Bitcoin. It is a Bitcoin hard fork, with the primary difference in maximum supply: Litecoin has a limit of 84 million coins, while Bitcoin is capped at 21 million.
Litecoin price analysis and expectations
The LTC price has been consolidating over the past few weeks. It remains slightly above the key support level at $115.15. Litecoin has entered the second phase of the Elliott Wave formation. The upcoming third wave could push LTC toward the 61.8% retracement level at $271.45, representing a potential 100% gain from current levels. However, the bullish outlook will be invalidated if the price drops below $100.
These expectations and potential approval might drive further investments in LTC, yet there are risks concerning institutional investor interest in this asset.
