Litecoin (LTC) Surges to Two-Month Highs on News of a Spot Litecoin ETF Filing with the U.S. Securities and Exchange Commission

Litecoin (LTC) rose 7.2% over the last day, exchanging hands at $71.52 on Wednesday, Oct. 16, its highest price seen since the end of July.

Cryptocurrency Litecoin (LTC) continued its rally on Wednesday, surging to a two-month high following news of a spot Litecoin exchange-traded fund (ETF) filing with the U.S. Securities and Exchange Commission (SEC).

Over the last 24 hours, Litecoin rose 7.2% and was trading at $71.52 on Wednesday morning, according to CoinGecko. This marks its highest price since the end of July.

The token’s recent rally comes after a 15% gain from its monthly low, with its market capitalization increasing from $4.6 billion on Oct. 3 to over $5.36 billion at the time of writing.

In the futures market, open interest for LTC futures contracts hit a multi-month high of $170 million, showing strong investor demand and interest in the asset.

After Canary Capital’s ETF announcement, Litecoin surged over 9% to hit a two-month high of $72.79.

Canary Capital, a crypto-focused investment firm, announced that it has filed an application with the SEC for a spot Litecoin ETF. If approved, this ETF will provide both retail and institutional investors with direct exposure to Litecoin. This makes it easier for them to invest in the cryptocurrency without having to hold the asset directly.

After the announcement, the token surged over 9% to hit a two-month high of $72.79.

In addition to the ETF news, broader market sentiment has also played a role in Litecoin’s price rally.

The crypto fear and greed index, a widely followed indicator of market sentiment, has shifted from a fear level of 38 last week to a greed reading of 77. This reflects an improving outlook for the crypto market overall, which is further supported by Bitcoin’s (BTC) recent ascent above $67,000, which also brought gains for other altcoins like Ethereum (ETH) and Solana (SOL).

Historically, altcoins like Litecoin tend to perform well during periods of heightened optimism and rising market confidence in Bitcoin. Community sentiment around Litecoin was notably positive per CoinMarketCap data, while traders on X portrayed a similar outlook.

As pointed out by analyst ZAYK Charts, LTC has broken out of a descending channel on the 1-day chart, a pattern that usually signals a bullish reversal. ZAYK now expects the token to climb to $100 in the short term, indicating a 28.5% upside from its current price.

One pseudonymous trader revealed that they have accumulated 0.1% of Litecoin’s total supply as part of a long-term investment strategy. This investor highlighted Litecoin’s durability and cited the Lindy Effect—the theory that the longer an asset has survived, the more likely it is to persist—as a rationale for their confidence. They also believe that once the current “meme-coin” bubble bursts, capital will flow back to established cryptocurrencies like Litecoin, which have stood the test of time.

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