Litecoin founder Charlie Lee recently spoke about his enthusiasm for the ETF application, particularly regarding the growing institutional interest in Litecoin and the likelihood of approval.
He also pointed to the importance of demand, reflected in the daily growth of more than 2% for the Grayscale Litecoin Trust, which currently trades at more than double NAV.
He also compared Litecoin’s peer-to-peer trading similarities to Bitcoin and said it is very likely that a Litecoin ETF will be approved in the near future.
Litecoin founder Charlie Lee says ETF approval is coming soon
Litecoin founder Charlie Lee recently expressed his delight at Canary Capital’s application for a Litecoin ETF, which shows that the cryptocurrency is gaining interest among both institutional and retail investors. This is because it shows that
🚨NEW: Litecoin Founder @SatoshiLite This statement was made by @FoxBusiness Regarding @canaryfunds Recent applications $LTC ETF:
“Excited to see Canary Capital filing for a Litecoin ETF. We are definitely seeing a lot of institutional demand for Litecoin. This is clear… https://t.co/CS7kg2Cn2g
— Eleanor Terrett (@EleanorTerrett) October 21, 2024
He confidently predicted that the approval of the LTC ETF will not take long as crypto ETF products are gaining momentum in the market. If this happens, some market experts predict that the price of Litecoin will jump to $400 or even more than $1,100 by 2026.
At the same time, market sentiment reflects growing demand for Litecoin, which may also help justify approval of this ETF. This interest follows a broader trend of institutional adoption of cryptocurrencies and highlights the changing dynamics across the digital asset landscape.
The SEC’s recent approval of the Bitcoin and Ethereum ETF finally opens the door for Solana’s spot ETF applications for other cryptocurrencies, including SOL, XRP, and Litecoin LTC, to be approved.
Of course, one of the big surprises last week was Canary Capital filing for a Litecoin ETF alongside its XRP request. Litecoin is trading at $70.88 at the time of writing, up 6% weekly.
A roller coaster: ETF filings fuel volatility
Litecoin’s founder pointed to the growing interest in Litecoin, citing the rising value of Grayscale’s Litecoin Trust as evidence of growing institutional demand. He said the trust is trading at more than double its net asset value (NAV), which is an indication of the market’s high interest in cryptocurrencies.
He concluded by adding that Litecoin has a lot in common with Bitcoin, as both are commodities. This optimism is consistent with a broader trend of increasing institutional involvement in cryptocurrencies.
Following the latest filing, LTC price rose significantly, reaching a monthly high of $75.88 and recovering from a low of $62.12. However, uncertainty surrounding the approval and general market volatility caused the price of Litecoin to decline by 5.04% to $71.44.
Canary Capital applies for Litecoin ETF following XRP application
At the time, Bloomberg Intelligence ETF analyst James Seifert only confirmed that Canary, which previously filed for an XRP ETF, is now filing for a Litecoin ETF.
Seifert agreed with Litecoin’s founders, but also said that Litecoin is already part of Europe through its exchange-traded product listing. “Some ETPs already hold Litecoin, such as Switzerland’s CoinShares’ $LITE and ETC Group’s Germany’s $ELTC,” Seifert said. He further explained that in the United States, the Grayscale Litecoin Trust trades under the symbol LTCN.
This latest ETF application is very different as it is a single ETF focused on Litecoin, whereas previous filings focused on major cryptocurrencies. Eric Balchunas, senior ETF analyst at Bloomberg, also chimed in on the significance of the filing. He explained that this is not only the first Litecoin ETF in the United States, but also potentially the first in the world.
“Even 21Shares doesn’t have that at this point,” he said.
The move comes just a week after Canary Capital filed for an XRP ETF on October 8th, drawing massive attention from the crypto community. XRP’s filing follows a similar filing by leading crypto asset management company Bitwise. Litecoin founder Lee expects that, if approved, both Litecoin and the XRP ETF will offer traditional investors a new way to gain exposure to the asset.
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Teuta
Teuta is a veteran writer and editor with over 15 years of experience in the macroeconomics, technology, cryptocurrency and blockchain industries. He started his career in 2005 as a lifestyle writer for Cosmopolitan magazine in Croatia and went on to cover business and economics for prestigious publications such as Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing that cryptocurrencies are one of humanity’s most important inventions. Her fintech efforts began in 2014 and focused on cryptocurrencies, blockchain, NFTs, and Web3. Known for his excellent teamwork and communication skills, Teuta holds a double master’s degree in political science and law, loves punk rock and Chablis, and has a passion for shoes.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
