Litecoin ETF has a higher chance of approval: Analyst
- Bloomberg analyst James Seyffart believes Litecoin ETF has a higher approval chance.
- The SEC did not delay its decision on Canary Capital’s spot LTC ETF, unlike other assets such as XRP and DOGE.
- The SEC is expected to decide on the fate of Canary Capital’s spot LTC ETF proposal on Monday.
- Litecoin’s price holds above the 4-hour chart’s 100- and 200-EMAs as the uptrend cools following April’s recovery.
Litecoin (LTC) price hovers at $86 during the Asian session on Monday, up slightly on the day even as the wider crypto market consolidates, following April’s recovery. Meanwhile, Bloomberg analyst James Seyffart believes that the spot Litecoin Exchange Traded Fund (ETF) proposal by Canary Capital has a higher probability of approval than other assets.
Canary Capital’s Litecoin ETF filing is due for SEC decision
The Canary Capital’s Litecoin ETF filing awaits the Securities and Exchange Commission (SEC) decision on Monday, as noted by Seyffart. While the SEC recently delayed its decision on key ETF filings for assets like Dogecoin and XRP, it did not postpone Canary Capital’s LTC ETF.
Seyffart believes Litecoin has the best shot at early approval, though he anticipated the SEC might extend the review period.
The Canary Capital’s Litecoin ETF proposal was filed on October 15, 2024, as an S-1 registration statement with the SEC. This initial filing marked the first step in the process, followed by a 19b-4 filing submitted by Nasdaq on January 16, 2025, to advance the regulatory review
Other Litecoin ETF proposals currently under review include Grayscale and CoinShares. The SEC has until October to decide the fate of the three Litecoin proposals. Bloomberg analysts released their latest approval odds last week, with Litecoin emerging as the strongest contender with a 90% probability of approval.
Litecoin defends critical support, signaling a potential breakout
Litecoin’s bullish outlook could make a comeback on Monday amid ETF news and confluence support around $84 established by the 4-hour 100 Exponential Moving Average (EMA) and the 200-day EMA.
A break above the 50 EMA and the ascending trendline resistance would clear the path for more gains toward the psychological hurdle at $100. However, traders should anticipate tentative delays in the $88 - $90 supply region.
The Relative Strength Index (RSI) could validate the potential trend reversal targeting $100 if the indicator recovers above the midline at 50. With LTC holding above all three moving averages, including the 50, 100, and 200 EMAs, the path with the least resistance could remain firmly upwards.
LTC/USDT 4-hour chart
On the other hand, broader sentiment in the crypto market would also contribute to Litecoin’s performance this week, especially with the Federal Reserve (Fed) expected to release its decision on interest rates.
United States (US) President Donald Trump has urged Fed Chair Jerome Powell to cut interest rates. However, sticky inflation and tariff tensions between the US and China could complicate matters for the Fed.
Powell said in April that “we may ourselves in the challenging scenario in which our dual-mandate goals are in tension.” The central bank’s dual mandate is low inflation and unemployment, two goals that often contradict.
Traders may want to ascertain Litecoin’s bullish potential toward $100 before going all in. Higher support above the 50-day EMA and the ascending trendline would encourage risk-on sentiment, prompting traders to buy, while anticipating price hikes.
Beyond the 100 and 200 EMA confluence support at $84, the next potential anchors for LTC lie in the demand zones of $81 and $75, respectively.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
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