- Canary Capital submits an LTC ETF application a week after XRP ETF.
- The filing claims Litecoin is fit for an enterprise-grade payment system.
- LTC picks up 10% gains as social media bursts with Litecoin ETF talks.
Proof of Work (PoW) networks have been leading the crypto rebound rally on Wednesday, as both Litecoin (LTC) and Dogecoin (DOGE) registered over 8% gains. Doubtlessly, the race is ignited by Bitcoin’s (BTC) bull campaign to $67K, as Bitcoin exchange-traded funds (ETFs) secured a 3-month high of a $556M daily inflow on October 14, 2024.
Meanwhile, the veteran altcoin Litecoin (LTC) briefly skyrocketed above $72, breaking out from a week-long consolidation phase. The OG altcoin tacked on to a new monthly high at $72.52 when Canary Capital, a leading crypto asset management company in the United States, sent the full documents for a Canary Litecoin ETF.
The Form S-1 document to the Securities and Exchange Commission (SEC) states that Litecoin is the longest-running blockchain technology to boast a 100% uptime. On October 13, 2024, the OG altcoin celebrated its 13th birthday. Interestingly, Canary Capital’s LTC ETF pitch highlights the argument that similarly to Bitcoin (BTC), LTC doesn’t fall under the securities label.
Sporting a 4 times bigger total supply than Bitcoin (BTC) at 84M LTC tokens, the #26 ranked altcoin has backtracked over 82% from the all-time peak of $410.26, hit over three years ago. However, the application from Canary Capital asserts that Litecoin makes a solid real-life use case through BitPay, as the digital payment processor makes one third of transactions in LTC.
Litecoin’s Three-Fold Success Formula
The 8% gain on Wednesday has netted Litecoin (LTC) a new monthly peak at $72.52. Notably, this LTC price boost can be explained by the social dominance, combined with the hefty daily trading volume of $669 million, according to CoinGecko. This is nearly twice as much as the likes of Cardano (ADA) and Tron (TRX), despite both competing altcoins being significantly higher in the global crypto ranks.
Aside from the social success and a leveled up trading volume, Litecoin’s (LTC) large money movement indicator, known as Chaikin Money Flow (CMF), also pointed to accumulation. On the 1-day charts, this metric hovered around 0.10, hinting at top holders increasing their LTC positions.
On the other hand, the Stochastic Relative Strength Index (stochRSI) flashed LTC to be in an overpriced region above 82 on the 1-day charts. Notably, the overbought condition is boosted by the extensive Litecoin ETF hype across social media. As of press time, Litecoin (LTC) trades at $70.35, still $5 below the 3-month price milestone of $75.95, hit on July 29, 2024.
On The Flipside
- In contrast to Bitcoin’s mysterious Satoshi Nakamoto, Litecoin’s founder Charlie Lee is still active in the project, contributing to the slightly modified Bitcoin database.
- This makes Litecoin (LTC) flexible in terms of technical upgrades, already solving some of Bitcoin’s (BTC) problems, including lesser transfer costs and remittances.
Why This Matters
Built on an identical codebase to Bitcoin, Litecoin stands out from other altcoins in the SEC’s crosshairs as a non-security.
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