Litecoin (LTC) Rockets by Double-Digits to Hit Four-Week High of $129.45

After surging by double-digits on Friday, Litecoin price hit a four-week high on Monday, amid growing optimism over the potential approval of a U.S.-listed spot exchange-traded fund (ETF) that tracks the LTC price directly.

As of press time, Litecoin is changing hands at around $137.34, up 21.5% on the day, according to data from CoinGecko.

The rally comes as Litecoin whales and sharks have snapped up roughly 250,000 LTC, valued at around $29 million since Jan. 9, according to blockchain analytics firm Santiment.

Meanwhile, Canary Capital amended its S-1 registration form with the U.S. Securities and Exchange Commission on January 15.

The move is being seen as a significant step toward regulatory engagement, with multiple asset managers vying for several different spot crypto ETFs, including ones based on LTC.

Canary's ETF proposal, if it secures the SEC’s regulatory green light, would see Litecoin join Bitcoin (BTC) and Ethereum (ETH) as the only other cryptocurrencies to have U.S.-approved spot ETFs.

The filing prompted comments from Bloomberg ETF analysts Eric Balchunas and James Seyffart, with Balchunas highlighting “chatter that the Litecoin S-1 had gotten comments back from SEC.”

This, Balchunas said, “bodes well for projections that Litecoin is likely to be the next major crypto to secure its own spot ETFs.”

Balchunas also noted that Canary filed the crucial 19b-4 form on behalf of Canary with the Nasdaq exchange on Friday, a regulatory filing that formally starts the clock for approval or denial by the SEC.

The form also states that Coinbase Custody Trust Company LLC will custody the ETFs Litecoin.

According to Balchunas, the looming leadership change at the SEC as Paul Atkins replaces Gary Gensler as the regulator’s chairman introduces a “huge variable” in the regulatory outlook.

Atkins is expected to create a more favorable environment for crypto ETF approvals.

In a Jan. 16 post on X, the Bloomberg analyst added that the Litecoin ETF application has met all the requisite requirements and conditions for approval.

Despite the recent rally, Litecoin is still trading 68% below its all-time high of $410.26, which was reached in May 2021.