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One of the oldest digital currencies, Litecoin ($LTC), has made significant strides in its value as Canary Capital company reveals its entrance to the world of cryptocurrency investing. The firm, founded by Valkyrie co-founder and longtime Litecoin advocate Steven McClurg, filed for the first-ever publicly traded ETF for Altcoin. This filing comes right after Canary Capital filed for an XRP ETF earlier, marking the company’s aggressive entrance into this space of crypto-ETFs, the Litecoin ETF.
Analysts reported that Litecoin values rose over just about six per cent to $71.46. This places LTC 9% above its previous prices from Wednesday on the hourly chart. This also increased the price by approximately 12% compared to two weeks before. If approved, the Litecoin ETF filing could set up more highs as market analysts have pointed out, sparking talks about mass adoption of digital assets and whether or not they will reach $1,000 coin mark.
The Importance Of A Litecoin ETF
An Exchange-Traded Fund (ETF) is a type of investment vehicle and fund structure where securities such as stocks, commodities or bonds are held to an extent that they track the movements of net asset values. In the context of a Litecoin ETF, this would allow investors to own Litecoin in an indirect fashion via traditional financial markets instead of having to figure out how they should go about buying, storing and securing the cryptocurrency on their own.
The U.S. Securities and Exchange Commission (SEC) has already approved a number of Bitcoin ETFs this year, causing the price of Bitcoins to rise significantly as well. Bitcoin hit an all-time high of $73,737.94 back in March, right after those ETFs were approved. In the same way, an ETF could help Litecoin. It may definitely push up its market price as both retail and institutional investors will have even more convenience to buy into these cryptocurrencies.
An ETF would provide Litecoin with an additional layer of mainstream recognition and legitimacy, something that could well come in very handy given the Altcoin’s age (Litecoin celebrated its 13th anniversary just last week) while preparing to enter a new wave towards traditional investors yet-to-explore crypto.
Is $1,000 Litecoin Price Within Reach?
According to crypto sources, it is believed that analysts are still sceptical about whether Litecoin can continue this momentum despite the recent high. It’s no news that Litecoin has been going sideways for close to a year. With the coin moving just 13.6%, over this period as last week’s move represents 12% of Litecoin’s total movement in the past twelve months. This gradual move stands in stark contrast to the quick spikes other cryptocurrencies experience surrounding ETF events, particularly Bitcoin or Ethereum.
On the other hand, Litecoin’s price chart continues to bounce in and out of lows, around $50 level and testing highs at its current price level of $71.46. Litecoin has ventured into what seems to be a critical resistance level that could potentially decide the next trend for it. After passing this resistance, the Altcoin might form new highs eventually.
In the same context, indicators such as relative strength index (RSI) of 60 are showing that LTC wasn’t overbought according to Litecoin’s price rally and could be just stable for a period if the continued positive news sentiments are factored with it.
Will ETFs Continue to Fuel Litecoin’s Run?
Bottom line, the effect of ETFs on cryptocurrency prices is important. Bitcoin and Ethereum enjoyed massive price upticks earlier this year as the approval of ETFs by the SEC gave investors a reason to become bullish. Despite cooling enthusiasm for Ethereum ETFs, a Litecoin equivalent could stir interest in the Altcoin.
Litecoin, which has a deserved reputation for being less volatile and slower-moving than Bitcoin or Ethereum (the only other two cryptocurrencies that most people have heard of), trails as the fourth biggest with 9.4 billion in circulation, according to news sources. Yet as one of the oldest and most established Altcoins, Litecoin still occupies an important corner in the crypto world, offering a steadier option for those wary of more volatile coins.
If the Litecoin ETF is launched, it could serve as a nice way of dipping one’s toes in with more conservative exposure to this market. Canarian Capital, the widely-followed company, may support this as a “less-risky” long-term alternative to other Altcoins.
Looking Ahead: What Lies in Store for Litecoin?
Whether Litecoin will ever get to $1,000 depends greatly on what the rest of the market is doing at any given time and whether or not institutional investors come around to that new Litecoin ETF. The approval of the SEC could introduce a fresh wave of capital from LTC and drive its price higher with new demand.
Nevertheless, Litecoin remains ahead of other crypto assets in terms of slow growth rather than explosive gains. Those interested in the Altcoin are going to have carefully monitor the building sentiment surrounding the given potential attempt at $1000.
At the moment, it looks like Litecoin has a bright future — one where it is picking up even more popularity in the ETF space. Litecoin might be in for an interesting journey, as it seems to receive stronger levels of support and has caught the attention from major investment firms such Canary Capital.
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