Litecoin (LTC) Jumps 12% as Polymarket Odds of Spot ETF Approval Rise to 86%

Litecoin (LTC) jumped more than 12%, reaching an intraday high of $135. It has now soared 165% from its lowest point in 2024.

Litecoin (LTC) price rose sharply on January 30 amid growing expectations that the Securities and Exchange Commission (SEC) will approve a spot exchange-traded fund (ETF) for the cryptocurrency.

LTC price surged over 12% to reach an intraday high of $135. The cryptocurrency has now risen 165% from its lowest point in 2024.

Polymarket odds of a spot LTC ETF approval have risen to 86%, indicating that the majority of participants expect the approval to come later this year. The odds increased after the SEC acknowledged Canary’s LTC ETF application and opened it for public comment.

First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC. Throw in the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes. Q now is will this SEC wait the full 240 days or approve more rapidly. Unknown.

The SEC is expected to approve the fund because Litecoin is similar to Bitcoin (BTC). It is a Bitcoin hard fork, with the main difference being the maximum supply. Litecoin is capped at 84 million coins, while Bitcoin is capped at 21 million.

Litecoin’s price is likely to rise ahead of the ETF approval as traders anticipate increased institutional demand.

However, there is a risk that Litecoin’s ETF will attract limited interest from institutional investors. Current data shows that most institutions are still focused on spot Bitcoin ETFs.

According to SoSoValue data, spot Bitcoin ETFs have seen inflows of almost $92 billion, bringing total assets under management (AUM) to $121 billion. The iShares Bitcoin ETF alone holds almost $60 billion in assets.

On the other hand, Ethereum (ETH) ETFs have seen cumulative inflows of $2.66 billion and now hold $11.8 billion in assets. Before its conversion into an ETF, the Grayscale Ethereum Trust had nearly $10 billion in assets. This trend suggests that institutional investors are mainly interested in Bitcoin funds. As a smaller and less adopted cryptocurrency, Litecoin’s ETF demand is likely to be modest.

Litecoin price analysis

The weekly chart shows that LTC’s price has been consolidating over the past few weeks. It remains slightly above the key support level at $115.15, which was the highest swing in May 2023 and April 2024. This price level also aligns with the upper boundary of the ascending triangle pattern and the 23.6% Fibonacci retracement level.

Litecoin has entered the second phase of the Elliott Wave formation. The upcoming third wave is usually the longest and 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 Litecoin’s price drops below the psychological support level of $100.