Litecoin is back in focus after ARK Invest filed a Form S-1 for the Ark CoinDesk 20 Crypto ETF. The proposed ETF is planned for listing on the New York Stock Exchange and would track the CoinDesk 20 Index, which includes some of the most established and liquid crypto assets. The Litecoin Foundation later confirmed that $LTC would be included in this index.
This does not mean money will flow into Litecoin immediately, but it does matter. Being part of an index-based ETF puts Litecoin in front of traditional investors who prefer regulated products. It also places LTC alongside Bitcoin and other major altcoins, reinforcing its position as a long-standing and high-liquidity asset in the crypto market.
For many institutional and traditional investors, ETFs offer a safer and simpler way to gain exposure. They do not need to buy or store crypto directly, and they can invest through familiar financial systems. Because of this, Litecoin’s inclusion gives it indirect institutional exposure, even before any ETF approval.
Derivatives markets reacted quickly after the news. Data showed that aggregated Open Interest increased by around $317 million over the past week. This suggests that traders are positioning early, driven more by speculation and expectations than by confirmed spot buying. Still, in many past ETF-related cases, derivatives activity appeared before broader market moves.
A similar situation was seen with SUI. When S-1 filings for spot SUI ETFs were submitted in December, the price later surged by nearly 49%. While Litecoin and SUI are different assets, the comparison shows how ETF narratives can attract attention and capital.
On-chain activity has also improved. Data from Santiment showed a rise in active addresses over the last seven days. This points to renewed interest from traders and users, not just futures speculation.
Whether this leads to a lasting price move will depend on what happens next. Continued institutional interest, stronger spot demand, and progress on ETF approvals will be key. If these factors align, Litecoin could see meaningful gains and potentially move back above the $100 level.
Overall, Litecoin is gaining attention again because of its role in a regulated investment product. Open Interest is rising, on-chain activity is improving, and institutional exposure is now part of the conversation. If this momentum continues, LTC could be setting up for a stronger phase ahead.