Litecoin (LTC) soared as much as 18% in the past 24 hours, fueled by growing optimism that it could be the next cryptocurrency to secure approval for an exchange-traded fund (ETF). However, some analysts warn that the excitement may be short-lived.

LTC Gains Despite Market Turmoil

While Litecoin spiked, the broader crypto market struggled, with Bitcoin (BTC) plunging below $84,000, down from its February 24 high of nearly $96,000, according to CoinGecko.

The surge in LTC comes after Bloomberg analysts Eric Balchunas and James Seyffart placed a 90% probability on a Litecoin ETF getting the green light. They also suggested that LTC’s approval chances were strong even under a more anti-crypto SEC leadership, given that the asset was launched as a Bitcoin alternative in 2013.

Despite its rapid rise today, Litecoin is merely recovering ground from its previous dip. At $130 at press time, it remains below its recent seven-day high of $138 from February 21.

ETF Approval: A Blessing or a Curse?

While an ETF approval sounds bullish, Ben Yorke, head of ecosystem at Woo Network, believes the hype might be more beneficial for Litecoin than the actual approval itself.

“It’s unlikely that institutional investors would have long-term conviction in a Bitcoin clone,” Yorke said. “It offers no yield, no real utility, and no organic demand beyond ETF speculation. It would likely be a classic ‘sell the news’ event, with investors rotating into newer trends and other ETF rumors.”

Litecoin’s Long-Term Outlook Remains Uncertain

Even after today’s rally, Litecoin is still nearly 70% below its 2021 peak of $400. According to Yorke, the long-term outlook remains uncertain, as LTC struggles to carve out a distinct role in the evolving crypto market.

For now, Litecoin enjoys its moment in the spotlight, but whether it can sustain momentum beyond ETF speculation remains to be seen.