Asset managers Grayscale and Coinshares have joined the race to launch a Litecoin (LTC) Spot ETF drawing reactions from the crypto group starting from pleasure to criticism.
Litecoin Spot ETF: Crypto Neighborhood Weighs In
On January 24, Coinshares filed an S-1 registration kind with the US Securities and Change Fee (SEC) to launch the COINSHARES LITECOIN ETF (the “Belief”), a spot exchange-traded fund that gives buyers publicity to cryptocurrency LTC.
In the meantime, Grayscale additionally filed a 19b-4 kind with the securities regulator to record and commerce its Grayscale Litecoin Belief, suggesting potential conversion to a Spot ETF. In doing so, each asset managers be a part of Canary Capital in a bid to launch the primary Litecoin Spot ETF.
This growth has spurred a lot euphoria within the crypto group as a spot ETF typically guarantees direct institutional adoption which may translate into vital worth development as seen within the Bitcoin market. Nonetheless, sure market analysts have attacked the concept of Litecoin Spot ETF which they imagine reveals little potential for achievement.
In accordance with famend crypto skilled, Ali Martinez, the Litecoin market seems largely unready for a spot ETF contemplating the asset has maintained the identical worth vary over the previous eight years. Martinez nudges asset managers to reasonably launch a USDT ETF which might permit buyers to earn a staking yield at worst.
In one other X submit, crypto analyst with username djThistle01 additionally questions the concept of a LTC ETF particularly because the asset has constantly declined in opposition to Bitcoin over the previous 10 years.
Nonetheless, different analysts argue that Litecoin’s community exercise makes up for its lack of in depth worth motion. In accordance with entrepreneur Tarun Tejpal, the LTC transaction depend has been on the rise since November 28. Notably, between 13-20 January 2025, Litecoin has processed over $69 billion in transactions translating into a median of $10 billion per day.
One other LTC fanatic named Aristotle’s Cash additionally highlighted the asset’s achievement as probably the most used cryptocurrency for cost in 2024 in keeping with knowledge from BitPay, demonstrating vital market curiosity.
Will A Litecoin Spot ETF Be Profitable?
In a reasonably uncanny vogue, the concept of Litecoin Spot ETF has drawn a division amongst crypto lovers and analysts. Apparently, this debate is more likely to quickly be settled as LTC is probably the subsequent crypto asset to safe a spot ETF forward of different altcoins together with Solana and XRP.
This assumption relies on developments such because the current submission of an S1-amendment by Canary Capital indicating an ongoing dialogue between the asset supervisor and the SEC. On the time of writing, Litecoin trades at $123.91 following a 0.72% acquire up to now day.
Featured picture from cryptoast, chart from Tradingview