Litecoin (LTC) Rises 18% Following ETF Speculation

Litecoin (LTC) experienced an impressive increase of 18% in 24 hours, while the broader crypto market was in a downward trend. The surge was largely fueled by speculation that Litecoin would soon get an exchange-traded fund (ETF).

The price jump occurred amidst a correction of Bitcoin (BTC), which dipped below $84,000, a sharp drop from nearly $96,000 on February 24, according to data from CoinGecko.

ETF Opportunities: Is Litecoin Next in Line?

Bloomberg analysts Eric Balchunas and James Seyffart recently estimated the chance of a Litecoin ETF being approved at 90%, a statistic that has helped the so-called ‘silver to Bitcoin’s gold’ to recover from a dip and significantly outperform the rest of the market.

Balchunas and Seyffart also said that a Litecoin ETF would likely have been approved, even if the anti-crypto Democrats in the SEC were still in charge. After all, it was created in 2013 as an alternative to Bitcoin.

Is there a ‘Sell the News’ Moment Coming?

Despite today’s strong rally, Litecoin is still struggling to make up for last week’s losses. At the time of writing, LTC is trading around $130, still below the $138 it reached on February 21.

Ben Yorke, Head of Ecosystem at Woo Network, doubts whether an ETF approval will actually have a lasting impact on the value of Litecoin.

“The hype around a possible ETF can give Litecoin a boost now, but once the approval is there, it could actually lead to a sell-off,” Yorke suggests. “Institutional investors are unlikely to pile in en masse, as Litecoin offers no unique return or utility beyond pure speculation.”

He adds that Litecoin is still nearly 70% below its 2021 record high of $400 and that the long-term prospects remain bleak.

What Does This Mean for Litecoin?

While the hype around an ETF is giving Litecoin a significant boost for now, the question remains whether this increase is sustainable. Historically, crypto assets have often shown a ‘buy the rumor, sell the news’ reaction.

With a possible ETF approval on the horizon, traders and investors will be closely watching whether Litecoin can hold onto its recent gains – or whether the market quickly changes direction again.