Litecoin (LTC) Price Jumps 17% as Whales Accumulate and Anticipation of a Spot ETF Approval Grows

Litecoin, created in 2011 with the goal of being a faster and more efficient alternative to Bitcoin, currently ranks as the 25th largest cryptocurrency by market capitalization.

Litecoin (CRYPTO: LTC) has seen a notable price increase, driven by two key factors: substantial accumulation by large holders and increasing anticipation of a spot Litecoin ETF approval in the United States.

Litecoin, created in 2011 with the goal of being a faster and more efficient alternative to Bitcoin, currently ranks as the 25th largest cryptocurrency by market capitalization. The recent price surge has seen it trading around $118.54, a 17% increase in the past 24 hours, a move that diverged from the performance of many other altcoins, according to Coinmarketcap data.

This upward trajectory is attributed to significant accumulation by addresses holding at least 10,000 LTC, which have collectively acquired an additional 250,000 LTC since January 9. This pattern of accumulation by large investors echoes similar activity observed in early December, suggesting a strong influence of these high-volume traders on Litecoin’s price.

Adding to the bullish sentiment is the growing belief that a spot Litecoin ETF could be the next crypto investment product approved by U.S. regulators.

Bloomberg senior ETF analyst Eric Balchunas has publicly stated his belief that a Litecoin ETF is the "most likely" candidate for the next spot crypto ETF approval. This prediction follows Canary Capital's recent submission of an amended S-1 form for its Litecoin ETF application. An S-1 form is a crucial initial registration document for new securities filed with the Securities and Exchange Commission (SEC), and the amendment suggests ongoing dialogue and engagement with the regulatory body.

We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. This said, new SEC chair has yet to start and that's a huge variable. https://t.co/cKFswPwcr0

Balchunas noted that the amended filing indicates the SEC has provided feedback on Canary's application, which he views as a positive sign. While he acknowledged that the upcoming change in SEC leadership following Gary Gensler's departure introduces a "huge variable," the appointment of former SEC commissioner Paul Atkins, considered crypto-friendly, by President-elect Trump has further fueled optimism. However, the timing of Atkins' Senate confirmation remains uncertain.

Another Bloomberg analyst, James Seyffart, pointed out that while the amended S-1 is a positive development, a 19b-4 filing (an application for a proposed rule change by a self-regulatory organization like the NYSE) would be a stronger indicator of potential approval.

Canary Capital originally filed its Litecoin ETF S-1 in October of the previous year, outlining U.S. Bancorp Fund Services as the ETF's administrator and Coinbase Custody Trust and BitGo as the custodians responsible for holding the Litecoin.