Litecoin ETF Next? Canary Capital Applies for Game-Changing ETF

Canary Capital lays out the key reasons why Litecoin has an edge over other altcoin peers as an ETF contender.

A bald Eagle keeping an eye on a canary on a Litecoin in a wireframe environment.
Created by Gabor Kovacs from DailyCoin
  • 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. The race was ignited by Bitcoinโ€™s (BTC) bull campaign to $67K, as Bitcoin exchange-traded funds (ETFs) secured a three-month high of a $556M daily inflow on October 14, 2024.

Meanwhile, veteran altcoin LTC briefly flew 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 and boasts 100% uptime. On October 13, 2024, LTC celebrated its 13th birthday. Canary Capitalโ€™s LTC ETF pitch highlights the argument that, similar to Bitcoin (BTC), LTC doesnโ€™t fall under the securities label.

Sponsored

Sporting four times more in total supply than BTC at 84M LTC tokens, the #26 ranked altcoin has backtracked over 82% from its 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.

Litecoinโ€™s Three-Fold Success Formula

The 8% gain on Wednesday has netted LTC a new monthly peak at $72.52. 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 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, Litecoinโ€™s large money movement indicator, Chaikin Money Flow (CMF), also pointed to accumulation. On the one-day charts, this metric hovered around 0.10, hinting at top holders increasing their LTC positions.

The Stochastic Relative Strength Index (stochRSI) flashed LTC 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 trades at $70.35, still $5 below the three-month price milestone of $75.95, hit on July 29, 2024.

On the Flipside

  • In contrast to Bitcoinโ€™s mysterious Satoshi Nakamoto, Litecoinโ€™s founder, Charlie Lee, is still active in the project, contributing to the slightly modified Bitcoin database.
  • This makes Litecoin (LTC) flexible regarding technical upgrades. It already solves some of Bitcoinโ€™s 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 SECโ€™s crosshairs as a non-security.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaลกevskis is a DailyCoin Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.

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