Litecoin (LTC) Surges 16.64% in 24 Hours, Market Cap Jumps $1B as Regulatory Speculation and Institutional Activity Ignite Bullish Sentiment

Litecoin (LTC), long considered the silver to Bitcoin's gold, has surged back into the spotlight with a price increase of 16.64% in the past 24 hours

Litecoin (LTC) has surged by 16.64% in the past 24 hours, climbing to $118.40 and outperforming other major altcoins. The rally has added over $1 billion in market capitalization to Litecoin, which now stands at 20th place among cryptocurrencies by market cap.

This price surge can be attributed to several factors, including speculation about a Litecoin ETF, institutional activity, and technical accumulation.

Litecoin ETF speculationAt the center of Litecoin’s recent rally is growing speculation about the potential approval of a Litecoin ETF. The Canary Capital S-1 filing, which was recently amended and filed with the SEC, suggests continued engagement on this front, sparking hopes that regulatory greenlights could be on the horizon.Well, whaddaya know.https://t.co/hlC77fqSdO pic.twitter.com/F9a3azS0RF

James Seyfart, a prominent ETF analyst, noted on January 15“Canary Funds just filed an amended S-1 for their Litecoin ETF filing. No guarantees—but this might be indicative of SEC engagement on the filing. Still no 19b-4 filing yet though, which would start the approval/denial clock.”

Adding further momentum to this narrative, Eric Balchunas, a well-known ETF expert, highlighted on January 16“We had heard chatter that the Litecoin S-1 had gotten comments back from the SEC. This looks to confirm that, which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, the new SEC chair has yet to start, and that’s a huge variable.”

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. All that said, new SEC chair has yet to start and that's a huge variable. https://t.co/cKFswPwcr0

The transition of the SEC chair from Gary Gensler to Paul Atkins, a figure regarded as crypto-friendly, has instilled additional confidence. The impending Trump inauguration has also amplified discussions about a more favorable regulatory environment, especially for altcoin-focused ETFs. Litecoin, along with XRP and ADA, is being positioned as a key beneficiary of this evolving regulatory landscape, with the potential to see substantial demand from institutional investors if an ETF is approved.

Litecoin whales emerge out of the blueInstitutional interest has also played a pivotal role in Litecoin’s recent ascent. The Grayscale Litecoin Trust (LTC) raised $2.3 million through a private placement of 242,900 new shares on January 9, 2025.

Meanwhile, on-chain analytics from Santiment have identified a significant accumulation of Litecoin by whales and sharks, who have collectively acquired 250,000 LTC since January 9.

LTC price predictionFrom a technical perspective, LTC’s short-term trend is displaying volatility, but Marks sees signs of strength emerging.

He noted“Litecoin back climbing with signs of MAJOR STRENGTH here and could be ready for a continuation towards its first target at $354.36!

With this target, an over 207% upside can be on the way, and that may only be a start.”

This aligns with Litecoin’s historical tendency to perform strongly during favorable market conditions and key developments, such as the introduction of new investment products like ETFs.