LTC Soars as Spot ETF Approval Odds Reach 90%: What’s Next for Litecoin?

Litecoin (LTC) experienced a significant surge of over 7% on May 2, 2025, outperforming the broader CoinDesk 20 Index, which gained 4%. This rally was fueled by growing Optimism surrounding the potential approval of a spot Litecoin ETF, with Bloomberg analyst Eric Balchunas now estimating a 90% probability of approval by the October 2 deadline. The breakthrough of the $86 resistance level further reinforced the bullish sentiment, suggesting potential for further upside if institutional demand is unlocked through an ETF.

Litecoin Jumps 7% as Spot ETF Approval Odds Hit 90%

Litecoin surged more than 7% on Thursday, outpacing the broader CoinDesk 20 Index’s 4% gain. The rally follows heightened optimism around a potential spot Litecoin ETF, with Bloomberg’s Eric Balchunas now assigning a 90% probability of approval by the October 2 deadline. Such a product could unlock institutional demand and fuel further upside.

Technicals reinforced the bullish case as LTC broke through the $86 resistance level, establishing an ascending channel pattern. Strong support emerged NEAR $84 during intraday trading that spanned $81.82 to $88.03. On-chain data shows accumulation at key Fibonacci levels, signaling conviction among buyers.

Summer of Crypto ETFs: XRP, DOGE, LTC, and SOL Products Poised for Approval

The launch of spot Bitcoin and Ethereum ETFs in the US last year marked a watershed moment for crypto adoption. Now, the market braces for a potential wave of altcoin ETF approvals, with Bloomberg’s Eric Balchunas predicting greenlights for XRP, Dogecoin, Litecoin, and Solana products as early as this summer.

Over 70 ETF applications currently sit before the SEC, reflecting growing institutional demand. The regulatory landscape has shifted notably, with former President Trump’s pro-crypto stance and recent policy developments creating a more favorable environment for digital asset financial products.

Balchunas’ comments at Token2019 in Dubai suggest the crypto ETF market may be entering a new phase of maturation. Polymarket data indicates rising confidence in these approvals, though final decisions remain subject to regulatory review.

Solana and Litecoin Diverge Amid Market Volatility

Solana faces bearish pressure as funding rates turn negative, signaling increased short positions. A 5% downward correction appears likely in the near term.

Litecoin shows relative strength, testing the $200 resistance level despite broader market turbulence. The asset demonstrates resilience where others falter.

Market analysts note the divergence between these two major altcoins reflects shifting capital flows during periods of uncertainty. Litecoin’s established network effects may be attracting risk-averse investors.