Litecoin Jumps 5% as Potential ETF Greenlight Stirs Market Optimism

Coinspeaker
Litecoin Jumps 5% as Potential ETF Greenlight Stirs Market Optimism

Decentralized peer-to-peer digital asset Litecoin (LTC) is in the spotlight following a notable price increase. This increase comes amid renewed discussions about the US SEC’s potential approval of its associated spot exchange-traded fund. Per the update, on May 5, Litecoin saw a 5% rise, reaching $88.65.

Expectations on Canary Capital’s Litecoin ETF Proposal

It is worth mentioning that the recent rally in the price of Litecoin comes hours before the United States Securities and Exchange Commission is set to announce its decision on a spot Litecoin ETF proposed by Canary Capital.

A spot Litecoin ETF is more likely to be approved than an XRP ETF and is expected to launch in the U.S. before the anticipated XRP ETFs.

The latest market update shows that analysts consider this moment a possible turning point for Litecoin. This is particularly important given that the SEC has already delayed decisions on several other cryptocurrency ETF filings, but not this one.

In a recent post on X, Bloomberg ETF analyst James Seyffart said that while he personally expects a delay, Litecoin stands out as the altcoin with the strongest chance of early approval. This sentiment has added fuel to the ongoing speculation and market activity surrounding the digital asset.

The @CanaryFunds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5. SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it's Litecoin IMO. Personally think a delay is more likely but def something to watch pic.twitter.com/FilnUcMtUH

— James Seyffart (@JSeyff) May 4, 2025

For context, Canary Capital submitted the initial registration for the Litecoin ETF in October 2024. Nasdaq followed with a 19b-4 filing in January 2025, seeking to list the fund for trading. The SEC has already acknowledged both filings, a key step toward possible approval. The final deadline for the agency’s decision is today, May 5.

Analysts say that approval would allow investors to gain exposure to Litecoin through regulated financial channels, without needing to buy or store the asset directly. This product type is seen as a major boost to mainstream adoption and institutional interest in other assets.

Litecoin Gains Momentum as Trading Volume Rises

Beyond speculation, Litecoin’s current price behavior is a mix of significant technical and market strength. It recently broke out of a long-held accumulation range between $65 and $85, showing a strong upward move. Currently, data from CoinMarketCap indicates that Litecoin is trading at $88.25, up by 2.86%.

Market analyst Crypto Patel has projected that if current conditions hold, Litecoin could hit short-term targets of $255 and possibly even $500. The coin’s trading volume supports this bullish outlook.

$LTC MACRO BREAKOUT – NEXT LEG INCOMING?#LITECOIN confirmed a breakout above its multi-year resistance line after holding the Best Accumulation Zone for months!

🔸 Support Held: ~$65
🔸 Accumulation Zone: ~$85-$65
🔸 Short-Term Target: $255/$500
🔸 Long-Term Target:… pic.twitter.com/wrFb0bpqT0

— Crypto Patel (@CryptoPatel) May 4, 2025

At the time of writing, daily volume has increased by 56.34%, climbing to over $410.18 million. This signals growing interest from both retail and institutional participants.

From a technical perspective, Litecoin trades above key exponential moving averages on the 4-hour chart, including the 50, 100, and 200 levels. Immediate resistance is expected between $88 and $90, with support holding around $84 and lower levels near $81 and $75, respectively.

With the market now fixated on Washington, Litecoin price and momentum suggest that investors are positioning ahead of a potentially historic moment for the cryptocurrency.

Beyond Litecoin, other new ETF products are also coming to the limelight. Grayscale has expanded its ETF offerings with the debut of Bitcoin Adopters ETF (BCOR). The BCOR ETF is designed to track the momentum of public companies that hold at least 100 BTC on their balance sheets.

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Litecoin Jumps 5% as Potential ETF Greenlight Stirs Market Optimism