Yerevan (CoinChapter.com) — Litecoin (LTC) price keeps soaring and is now at $230.
The ninth-largest cryptocurrency has seen an 80% rise since the beginning of 2021. Its latest upside move comes against the prospect of two key fundamentals: an ongoing rally across the alternative cryptocurrencies, or “altseason” and CoinShares’ decision to launch a new physically-backed ETP (exchange-traded product) — Physical Litecoin (LITE) — Tuesday.
Altcoin Season Firing Up
Bitcoin’s race slowed down after reaching a record-high $61,000 on March 13, 2021. The flagship cryptocurrency’s consolidation phase has prompted many traders to secure their profits and reinvest the proceedings to its top rivals, while considering them undervalued.
Ethereum’s ETH, Litecoin’s LTC, and Ripple’s XRP benefitted from such a capital transfer. ETH already crossed the $2,000-level earlier this week and was changing hands for $2,062 today. Meanwhile, traders have parked capital even into XRP, a cryptocurrency hit facing a lawsuit by the SEC (US Security and Exchange Commission). It reached $1.09 on April 6.
Similarly, Litecoin had a heck of a ride on the altcoin season wave and is now at $230, with an 80% rise since Jan 2021. But altcoin season is not the only explanation behind the recent LTC rally. Recent CoinShares expansion played a major role as well.
CoinShares Launches Litecoin ETP
CoinShares, a digital asset investment firm in London with $1 billion worth of assets under management, introduced the physically-backed Litecoin ETP. Each Litecoin ETP unit has 0.2 LTC behind it, which stands at $45. SIX Swiss Exchange platform included LITE in the list of investment products with a base fee of 1.5%.
Institutional integration of cryptocurrencies tends to attract wealthy investors. With CoinShares’ Litecoin-focused derivative, Litecoin tends to benefit from mainstream investments. The cryptocurrency was among the first altcoins launched as an alternative to Bitcoin scalability issues.
CoinShares have earlier launched two crypto-focused ETPs. It introduced a Bitcoin ETP in January 2021 and Ethereum ETP in February 2021.