- Canary Capital submits application for LTC ETF one week after XRP ETF.
- The filing claims Litecoin is suitable for enterprise-level payment systems.
- LTC gained 10% as social media exploded with Litecoin ETF discussion.
Proof-of-work (PoW) networks are leading the cryptocurrency rally on Wednesday, with Litecoin (LTC) and Dogecoin (DOGE) both posting gains of more than 8%. The race was sparked by Bitcoin (BTC)’s $67,000 rally campaign as the Bitcoin exchange-traded fund (ETF) secured daily inflows of $556 million, a three-month high, on October 14, 2024.
Meanwhile, veteran altcoin LTC briefly rose above $72, breaking out of a week-long consolidation phase. The OG altcoin hit a new monthly high of $72.52 when Canary Capital, a leading US cryptocurrency asset management firm, sent a full document on the Canary Litecoin ETF.
A Form S-1 document filed with the Securities and Exchange Commission (SEC) states that Litecoin is the longest-running blockchain technology and boasts 100% uptime. On October 13, 2024, LTC celebrated its 13th anniversary. Canary Capital’s LTC ETF presentation highlights the argument that, similar to Bitcoin (BTC), LTC does not belong under a security label.
The 26th-ranked altcoin, which boasts a total supply four times greater than BTC at 84 million LTC tokens, is down more than 82% from its peak of $410.26 three years ago. However, Canary Capital’s application argues that Litecoin makes a solid real-world use case over BitPay, as the digital payment processor conducts one-third of transactions in LTC.
Litecoin’s Triple Success Formula
Wednesday’s 8% gain pushed LTC to a new monthly high of $72.52. According to CoinGecko, this LTC price increase can be explained by its social dominance and massive daily trading volume of $669 million. This is almost double the number of competing altcoins, Cardano (ADA) and Tron (TRX), despite being much higher in the global cryptocurrency rankings.
In addition to social success and leveled-up trading volume, Litecoin’s large-scale fund movement indicator, Chaikin Money Flow (CMF), also showed accumulation. On the 1-day chart, this indicator hovers around 0.10, implying that top holders are increasing their LTC positions.
The stochRSI (Stochastic Relative Strength Index) flashed LTC in the high region above 82 on the 1-day chart. In particular, widespread Litecoin ETF hype across social media has further strengthened the overbought condition. As of press time, Litecoin is trading at $70.35, which is still $5 below the three-month price milestone of $75.95 reached on July 29, 2024.
On the flip side
- In contrast to Bitcoin’s mysterious Satoshi Nakamoto, Litecoin founder Charlie Lee is still actively involved in the project, contributing to a slightly modified Bitcoin database.
- This makes Litecoin (LTC) flexible when it comes to technology upgrades. This has already solved some of Bitcoin’s problems, including reducing transmission and remittance costs.
Why This Matters
Built on the same codebase as Bitcoin, Litecoin is unsecured, setting it apart from other altcoins in the SEC’s crosshairs.
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