Litecoin price is poised for a parabolic rally after the US Securities and Exchange Commission (SEC) acknowledged CoinShares’ filing for a spot Litecoin exchange-traded fund (ETF). Bloomberg analysts had earlier placed the odds of an LTC ETF approval in 2025 at 90% because of its positive regulatory standing with the SEC.
On Wednesday, Litecoin hit a monthly high of $139 before retreating to trade at $130.89 at press time. Despite the dip, LTC value today holds a 6.8% weekly gain.
SEC Acknowledges LTC ETF Filing: Is a Litecoin Price Breakout Imminent?
On Wednesday, the SEC acknowledged a filing by the Nasdaq stock exchange to trade shares of a Litecoin ETF that would be offered by CoinShares. The regulator stated that it was soliciting public comments following the rule changes proposed by Nasdaq when it submitted its 19b-4 filing to list the ETF.
SEC Filing on LTC ETF
The recent filing brings the ETF closer to approval. The optimism around this product was fuelled by ETF analysts James Seyffart and Eric Balchunas who stated that Litecoin is likely to become the second altcoin ETF to launch in the US due to its non-security status.
If approved, this product will allow institutional investors to gain exposure to Litecoin without having to hold LTC. This will help drive the altcoin’s adoption on Wall Street as has been the case with Bitcoin and Ethereum.
The launch of this ETF will also bode well for Litecoin price, which is 68% below its all-time highs. Per analysts, the approval could result in a nearly 40x price rally to $5,000. Whales seem to be positioning themselves for this eventuality after accumulating $512M LTC in the last two weeks.
Analyst Maps LTC Price Path to $5,000
A massive Litecoin bull rally could be underway, leading to a major breakout past $5,000. This is according to analyst Crypto Surf, who noted that Litecoin price has formed a symmetrical triangle pattern on the six-month chart.
LTC/USD: Crypto Surf
A symmetrical triangle pattern forms during price consolidation. After years of sideways trading, Litecoin has broken above resistance at the upper trendline, suggesting a bullish continuation. If this plays out, LTC price is likely poised to rally by nearly 40x to $5,000.
If Litecoin hits this price, it would have a $377 billion market capitalization given its current circulating supply of 75.54M LTC.
A Litecoin rally to $5,000 is likely if a spot ETF is approved. However, this rally is also contingent on the altcoin attracting high inflows and outperforming Ethereum ETFs, which have witnessed sluggish performance since their launch.
Litecoin Open Interest Approaches 4-Year High
As the long-term Litecoin price forecast highlights a possible rally to $5,000, the short-term sentiment remains significantly bullish. This follows a surge in LTC’s open interest (OI) to its highest level since May 2021 according to Coinglass.
LTC Open Interest: Coinglass
On February 20, 2025, Litecoin’s OI surged to $869M as the price hit a monthly high. When the open interest rises alongside the price, it indicates bullish momentum. Moreover, going by past trends, a surge in Litecoin OI tends to follow a price increase.
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