Litecoin Pops 18% Amid ETF Hype

LTC surged as broader markets retreated, but the rally may not have legs once an exchange-traded fund is approved, argues Woo Network’s Ben Yorke.

By: Leo Jakobson • February 27, 2025

Litecoin jumped as much as 18% over the past 24 hours, largely on expectations that it’s next in line for an exchange-traded fund (ETF).

The rally came even as Bitcoin crashed again, dropping below $84,000, according to CoinGecko. That’s down from almost $96,000 on Feb 24.

Bloomberg analysts Eric Balchunas and James Seyffart recently put the odds of a Litecoin ETF being approved at 90%, a stat that has helped the so-called ‘silver to Bitcoin’s gold’ break out of a slump, outperforming the rest of the market substantially.

Balchunas and Seyffart had also said a Litecoin ETF would likely have been approved even if the anti-crypto Democrats on the SEC were still in charge. It was, after all, created as a Bitcoin alternative in 2013.

Despite its impressive gains today, the rally only made up for the previous day’s drop, and trading at $130 at press time, LTC remains well off its seven-day high of $138 on Feb. 21.

Ben Yorke, head of ecosystem at Woo Network, believes the rumor that Litecoin will get an ETF may be better for the asset than actually getting one.

“It’s unlikely that institutional investors would have long-term conviction in the Bitcoin clone, as it offers no yield, utility, or organic demand outside of ETF approval speculation,” Yorke said. “Would likely be a ‘sell the news’ event, as investors would look to rotate into more topical trends and future ETF rumors.”

Litecoin is still nearly 70% under its 2021 highs around $400, Yorke noted, arguing that its “long-term outlook remains bleak.”