TLDR

Litecoin surged 19% in 24 hours, reaching beyond $120, outperforming most cryptocurrencies
Large investors (sharks and whales) accumulated 250,000 LTC (around $30M) in the past week
Potential Litecoin ETF by Canary Capital could attract $290-580M in first year if adoption mirrors Bitcoin ETFs
Nasdaq filed official SEC documentation for Litecoin ETF consideration in January 2025
Currently, about 6% of Bitcoin’s supply is in ETFs, while Ethereum ETFs hold about 3% of total ETH supply

Litecoin (LTC) has emerged as a standout performer in the cryptocurrency market, marking a 19% increase in price over the past 24 hours and pushing beyond the $120 mark.

This surge comes as Nasdaq filed official documentation with the Securities and Exchange Commission (SEC) for a potential Litecoin ETF, opening new possibilities for institutional investment.

The price movement has positioned Litecoin among the top performers in the digital asset space, with only XRP and Hedera showing comparable returns during the same period. Despite the recent uptick, Litecoin’s weekly gains remain at 16%, suggesting room for further growth.

On-chain data reveals substantial activity from large investors, commonly known as sharks and whales. These investors, holding between 10,000 LTC and above, have accumulated approximately 250,000 tokens, equivalent to $30 million, over the past week. This accumulation pattern coincides with the recent price appreciation.

Litecoin
LTC Price

Canary Capital, founded by former Valkyrie Funds co-founder Steven McClurg, has emerged as the frontrunner in the race to launch a Litecoin ETF. The firm initiated the process in October 2024, setting the stage for potential regulatory approval.

Industry analysts have begun calculating potential inflows for a Litecoin ETF, using Bitcoin ETF adoption rates as a benchmark. Current data shows that approximately 6% of Bitcoin’s total supply is held in ETFs, while Ethereum ETFs maintain about 3% of the total ETH supply.

Based on these adoption patterns, projections suggest that a Litecoin ETF could attract between $290 million and $580 million in its first year of trading. While these figures may seem modest compared to Bitcoin ETF’s $108 billion or Ethereum ETF’s $12 billion, they represent a substantial amount in the broader ETF market.

Market experts note that successful ETF launches are not solely determined by comparison to major cryptocurrencies. Bloomberg Intelligence ETF analyst James Seyffart emphasizes that even with comparatively lower demand, a Litecoin ETF could still achieve success on its own terms.

The technical similarities between Litecoin and Bitcoin, particularly their shared proof-of-work consensus mechanism, may influence regulatory decisions. This technological alignment could potentially streamline the approval process, according to market observers.

JPMorgan analyst Kenneth B. Worthington has highlighted the importance of sustained investor interest in cryptocurrency ETF products. His analysis suggests that while tokens beyond Bitcoin and Ethereum can attract attention, maintaining long-term investor engagement remains crucial.

The current cryptocurrency ETF landscape shows varying levels of market penetration. Bitcoin ETFs have set unprecedented records, with BlackRock’s iShares Bitcoin Fund (IBIT) achieving the most successful launch in U.S. ETF history.

Market data reveals that only about 1,330 out of 4,000 ETFs in the United States manage assets exceeding $300 million. This context places the projected Litecoin ETF inflows within a competitive range of the broader ETF market.

The timing of the Litecoin ETF consideration coincides with increased institutional interest in cryptocurrency investment vehicles. The SEC’s review process will determine the next steps for this potential investment product.

Recent market activity shows particular strength in Litecoin’s performance relative to other top cryptocurrencies. The 19% price increase has brought renewed attention to the asset, which maintains a market capitalization of $9.6 billion.

On-chain metrics continue to show active participation from large holders, with wallet data indicating sustained accumulation patterns. This investor behavior suggests growing confidence in Litecoin’s market position.

The Nasdaq filing has initiated a formal review period for the SEC to evaluate the Litecoin ETF proposal. Market participants await regulatory decisions that could shape the future of Litecoin investment products.

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