Litecoin (LTC) Is in the Spotlight Ahead of Canary Capital's Spot ETF Decision

Decentralized peer-to-peer digital asset Litecoin (LTC) is in the spotlight following a notable price increase. This increase comes amid renewed discussions

The decentralized, peer-to-peer digital asset, Litecoin (LTC), is making headlines again as it encircles new price highs. This surge comes amid heightened interest in the US SEC’s verdict on the pending Litecoin spot exchange-traded fund.

Litecoin price today, May 5, shows a 5% increase, bringing it to $88.65.

Canary Capital’s Litecoin ETF Proposal Awaits US SEC Decision

It is pertinent to note that the recent rally in the price of Litecoin comes hours after the United States Securities and Exchange Commission is to announce its decision on a spot Litecoin ETF proposed by Canary Capital.

To be clear, a spot Litecoin ETF is more likely to be approved than an XRP ETF and is expected to launch in the U.S. before the anticipated XRP ETFs.

The latest market developments unfold as analysts highlight this moment as a potential turning point for Litecoin. This becomes especially crucial considering the SEC has already postponed decisions on several other cryptocurrency ETF filings, but not this one.

In a recent post on X, Bloomberg ETF analyst James Seyffart shared that while he personally anticipates a delay, Litecoin emerges as the altcoin with the strongest chance of early approval. This sentiment has further fueled the ongoing speculation and market activity surrounding the digital asset.

The @CanaryFunds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5. SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it's Litecoin IMO. Personally think a delay is more likely but def something to watch pic.twitter.com/FilnUcMtUH— James Seyffart (@JSeyff) May 4, 2025

For context, Canary Capital submitted the initial registration for the Litecoin ETF in October 2024. Nasdaq followed with a 19b-4 filing in January 2025, seeking to list the fund for trading. The SEC has already acknowledged both filings, a key step toward possible approval. The final deadline for the agency's decision is today, May 5.

Analysts add that approval would allow investors to gain exposure to Litecoin through regulated financial channels, without needing to buy or store the asset directly. This product type is viewed as a major boost to mainstream adoption and institutional interest in other assets.

Litecoin Technical Analysis: LTC Price Rises With Volume

Beyond the ETF speculation, Litecoin’s current price action showcases a mix of technical strength and market resilience. It recently broke out of a long-held accumulation range between $65 and $85, displaying a persistent upward move.

According to data available on CoinMarketCap, Litecoin is currently being traded at $88.25, notching up a 2.86% price increment in the 24-hour trading period.

Analyst Crypto Patel predicts that if present market conditions hold, Litecoin could hit near-term price targets of $255 and potentially even $500. The coin’s high trading volume supports this bullish outlook.

$LTC MACRO BREAKOUT – NEXT LEG INCOMING?#LITECOIN confirmed a breakout above its multi-year resistance line after holding the Best Accumulation Zone for months!

🔸 Support Held: ~$65

🔸 Accumulation Zone: ~$85-$65

🔸 Short-Term Target: $255/$500

🔸 Long-Term Target: ...

At the time of writing, daily volume has surged by 56.34%, pushing it to over $410.18 million. This signals a significant build-up of interest, likely from both retail and institutional participants.

From a technical standpoint, Litecoin is trading above key exponential moving averages on the 4-hour chart, specifically the 50, 100, and 200 EMA levels. Immediate resistance is anticipated between the $88 and $90 price points, with support expected around $84 and lower levels at $81 and $75.

As the market eagerly awaits the US SEC's verdict on the pending Litecoin ETF, the cryptocurrency's price and momentum suggest that investors are positioning themselves ahead of what could be a historic moment for the digital asset in the U.S. financial markets.

Apart from Litecoin, Grayscale is expanding its ETF offerings with the debut of Bitcoin Adopters ETF (NYSE:BCOR). The BCOR ETF is designed to track the momentum of public companies that hold at least 100 BTC in their treasury.