Litecoin price prediction as SEC rules on the spot Litecoin ETF by Canary Capital
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The cryptocurrency market is buzzing with anticipation as the US Securities and Exchange Commission (SEC) prepares to deliver its verdict on Canary Capital’s spot Litecoin ETF today (May 5, 2025).
Litecoin, often referred to as the “silver to Bitcoin’s gold,” has long been a stalwart in the crypto space.
With a current price of $88.75, Litecoin holds the 21st spot among cryptocurrencies by market capitalisation.
Its market cap stands at an impressive $6.706 billion, reflecting a robust circulating supply of 75.82 million LTC out of a maximum of 84 million.
Amid the looming SEC decision, the trading volume has surged by 31% to $365.36 million over the past 24 hours, signaling heightened investor interest.
SEC’s ruling on Canary Capital’s Litecoin ETF
The SEC’s ruling on Canary Capital’s Litecoin ETF is a make-or-break moment for the altcoin.
Unlike other cryptocurrency ETF filings, Canary’s proposal has avoided early delays, sparking cautious optimism.
Bloomberg ETF analyst James Seyffart has highlighted the filing’s unique status, noting that Litecoin is the most likely candidate for early approval.
However, Seyffart’s temper expectations, suggesting a delay, remain the more probable outcome.
On March 11, the SEC postponed decisions on multiple altcoin ETFs, including Canary’s Litecoin, XRP, and Solana filings, as well as Grayscale’s Dogecoin and Litecoin proposals.
This history of delays has fueled scepticism among some investors, with one X user, Panda, dismissing the ETF’s relevance due to Litecoin’s relatively modest $6.25 billion market cap.
Others, however, see approval as a transformative step for altcoin investment products.
The precedent set by Bitcoin and Ethereum spot ETFs lends credence to these hopes.
Approval could open the floodgates for institutional investment, boosting Litecoin’s liquidity and price stability.
What are the chances of approval?
The crypto community is divided on the ETF’s prospects, reflecting broader uncertainty about regulatory progress.
Some enthusiasts view approval as a landmark for altcoin legitimacy, drawing parallels with Bitcoin’s ETF success.
Others, jaded by years of delays, express frustration, with one X user lamenting “five years of hope” without results.
Seyffart’s February analysis, alongside colleague Eric Balchunas, had pegged Litecoin’s ETF approval odds at 90% for 2025 before today’s Seyffart tempered expectations.
This probability, up from 85% pre-Trump re-election, reflects a shifting regulatory landscape.
Dogecoin, Solana, and XRP trailed with 75%, 70%, and 65% chances, respectively.
The SEC’s cautious approach stems from concerns over market surveillance and investor protections.
However, Litecoin’s longevity and established infrastructure make it a “digestible” candidate for regulators.
A delay today would disappoint, but align with the SEC’s conservative track record.
LTC price movement flashing bullish signals
Technical indicators are flashing bullish signals for Litecoin’s price as the ETF decision approaches.
The altcoin recently broke through a multi-year resistance line, exiting its accumulation range of $65–$85, fueling optimism of more upside movement.
This optimism is bolstered by Litecoin’s 24-hour price increase of 3.0% and a 7-day gain of 1.5%.
Over the past year, Litecoin has climbed 9.2%, a steady performance for an altcoin in a volatile market.
Its daily trading volume-to-market cap ratio of 5.61% reflects strong market activity.
With 98.65K holders and a stable reputation, Litecoin is well-positioned for a potential surge.
The Litecoin ETF approval could act as a catalyst, amplifying this upward momentum.
Litecoin price prediction
If the SEC approves the Litecoin ETF, the price could soar drastically.
Analyst Crypto Patel predicts a breakout rally, with short-term price targets of $255–$500, with ambitious Long-term projections ranging from $1,000 to $1,458.
Institutional inflows would likely drive demand, tighten supply and push prices higher.
Even a delay could sustain bullish sentiment, given Litecoin’s recent technical breakout.
However, a prolonged delay might dampen enthusiasm, leading to short-term price consolidation.
Litecoin’s historical performance offers context: its all-time high was $410.26 in May 2021, a 78.6% drop from today’s price.
Conversely, its all-time low of $1.15 in January 2015 reflects a staggering 7,551.1% growth since.
These extremes highlight Litecoin’s resilience and potential for explosive rallies.
With daily volumes jumping and ETF hopes fueling speculation, Litecoin is poised for volatility.
A Litecoin ETF approval could propel it toward $500, while a delay might see it hover near $100.
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