Litecoin Tops Crypto Gains As Open Interest Hits 3-Year High: Retail Bullish On ETF Approval

Litecoin (LTC) extended its rally on Wednesday, climbing nearly 10% in the last 24 hours – leading gains among the top 20 cryptocurrencies by market capitalization – to reclaim the $135 level.

The cryptocurrency has gained over 7% this week and is up 18% over the past seven days, outpacing Bitcoin (BTC) and Ethereum (ETH) in daily and weekly gains.

The surge in LTC’s price comes as open interest in the cryptocurrency reaches $925 million, the highest level since May 2021, according to Coinglass data. 

Higher open interest usually signals higher trading activity, suggesting a more liquid and active market driven by fresh capital. Increasing open interest alongside rising prices can indicate a strong upward trend.

Meanwhile, Bitcoin rose 1%, and Ethereum’s native token, Ether (ETH), gained 1.7% in early Wednesday trading.

Litecoin's recent price action has captured retail interest, with the token ranking among the top trending tickers on Stocktwits. 

Market watchers note that it is unusual for Litecoin to lead crypto rallies, particularly following a broad-based market decline.

Growing speculation about a potential Litecoin ETF has contributed to the recent price jump. 

Major firms, including Grayscale, Canary Capital, and CoinShares, are pushing for an LTC ETF approval in the U.S., adding to investor optimism.

Bloomberg analysts estimate a 90% likelihood that a Litecoin ETF will receive approval in 2025, citing the lack of regulatory hurdles around the token. 

Unlike other cryptocurrencies facing scrutiny, Litecoin is widely considered a commodity by the U.S. Securities and Exchange Commission (SEC), increasing the chances of regulatory clearance.

Litecoin Sentiment and Message Volume on Feb.19 as of 7:00 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Litecoin surged to ‘extremely bullish’ territory from ‘bullish’ a day ago, while message volume remained at ‘high’ levels. 

Retail watchers believe the pump in Litecoin’s token may be due to an ETF approval soon on the cards. 

Others compared its gains to Ripple (XRP), which is also in line for an ETF approval. Grayscale’s application for an XRP ETF was acknowledged by the SEC just last week.

Litecoin’s rally comes amid discussions of a potential "altcoin season," a market cycle in which altcoins outperform Bitcoin due to shifting investor interest. 

Historically, Ethereum (ETH), Cardano (ADA), and Binance Coin (BNB) saw substantial gains during past alt seasons, and some traders believe Litecoin may be positioning itself for a similar breakout.

Meanwhile, macroeconomic factors remain in focus, with the Federal Reserve’s January meeting minutes set for release later on Wednesday. 

The Fed has maintained a cautious stance on rate cuts, and recent hotter-than-expected inflation data could temper risk appetite in markets, including crypto. 

Traders will monitor policymakers’ comments closely to gauge whether they still view it as restrictive, which could influence broader crypto trends.

Litecoin has been one of 2025’s strongest-performing cryptocurrencies, gaining over 25% year-to-date.

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