Grayscale Investments and Coinshares have submitted requests to the U.S Securities and Exchange Commission (SEC) to introduce Litecoin ETFs.
Nate Geraci, the ETF Store’s President, mentioned that Grayscale applied for the listing of its Grayscale Litecoin Trust as an ETF using a 19b-4 form. Coinshares also submitted an S-1 form for its Litecoin ETF proposal.
Following Canary Capital’s initial submission, Grayscale and Coinshares are now the second and third asset managers looking to gain approval for a Litecoin ETF, indicating a rising interest in crypto-related ETFs under the present SEC leadership.
Litecoin’s Price Activity and Market Movement
At the time of writing, Litecoin (LTC) was valued at $122.05, showing a 4.47% increase in the last 24 hours. Despite a 2.63% decline over the week, Litecoin’s market cap was around $9.22 billion, with a circulating supply of 75 million LTC.
Observing the 4-hour chart, Litecoin’s price appeared to be consolidating within the Bollinger Bands, facing immediate resistance around $130 and short-term support at $117.11. The $111.25 level marked a crucial downside threshold in case of bearish movements.
The MACD indicator on the chart demonstrated a bullish crossover, indicating potential upward momentum. However, the decreasing size of the histogram suggested the necessity for stronger buying activity to propel the price upwards.
Linkage Between Transaction Volume and Price Trends
Insights from IntoTheBlock unveiled a notable connection between substantial transactions and price fluctuations. A spike in large transactions to 4.93k on 18 January 2025 corresponded to Litecoin inching closer to the $140 mark.
Conversely, a decline in large transactions to 3.43k showcased reduced market activity as Litecoin maintained levels above $120.
This decrease in significant transactions seemed to align with a drop in address engagements. Over the past week, new addresses decreased by 7.43%, active addresses by 9.36%, and zero-balance addresses by 11.15%, indicating a decrease in network involvement and speculative interest during the consolidation phase.
Potential Influence on Litecoin Price Movements
The anticipated approval of Litecoin ETFs by renowned asset managers like Grayscale and Coinshares could heighten optimism among traders. Approval of these ETFs might attract more institutional investments and enhance liquidity, potentially leading to an uptrend in prices.
Considering resistance at $130 and support at $117.11 based on technical indicators, a breakout or breakdown is likely to determine Litecoin’s short-term trajectory.
An increase in engagement from institutional investors post-ETF approval could drive Litecoin’s price towards previous peaks of $140 or even higher.