Litecoin (LTC) founder Charlie Lee expressed optimism about the chances of a Litecoin exchange-traded fund (ETF) being approved.
In a post on X, Lee broke his silence regarding Canary Capital’s Litecoin ETF application. His comments come as industry experts remain optimistic that regulators may approve more crypto ETF products.
Litecoin founder breaks silence about LTC ETF
Lee believes that a Litecoin ETF will help more people recognize Litecoin as an important option in the crypto market. LTC remains relevant despite the rise of newer alternative altcoins. The ETF will allow institutional investors and traditional market players to invest in Litecoin without having to buy or deal with the cryptocurrency directly.
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This ease of access could result in more capital flowing into Litecoin, increasing its value and leading to long-term growth. Canary Capital has filed a Litecoin ETF with the Securities and Exchange Commission (SEC). The filing is part of a series of crypto ETF filings that have recently attracted investors. Meanwhile, the application focuses on providing exposure to the value of LTC held by the Trust.
Litecoin’s key characteristics make it attractive to many institutional investors. As such, investing in Litecoin provides unique exposure to a proven and trusted cryptocurrency. In addition to the move from an asset management company, CoinShares operates a Litecoin-based exchange-traded product in Switzerland. Grayscale Investments received approval from the Financial Industry Regulatory Authority (FINRA) to offer a dedicated Litecoin trust four years ago.
Charlie Lee believes that the ETF filing is a positive sign for the crypto industry. He believes that financial products linked to digital assets will help more people adopt cryptocurrencies and reduce market volatility.
Capital inflows will also drive LTC prices higher in the long run. With institutional backing, it could chart a path to catch up with core rivals like Ethereum (ETH) on a per market cap basis. According to market data, Litecoin has a market capitalization of over $5.3 billion. The circulating supply of LTC exceeds 84 million units. At the time of writing, the coin was trading at $71.19.
Crypto ETF outlook changes, SOL, XRP and now Litecoin
After Bitwise filed its first spot XRP ETF application, Canary Capital followed in its footsteps. These crypto ETF trends highlight the growing interest among institutional investors in digital assets beyond Bitcoin and Ethereum. When the Spot Bitcoin ETF launched in early 2024, several analysts predicted that other crypto ETFs would follow suit.
So far, VanEck and 21Shares have each submitted Solana ETF applications. Although the 19b-4 filing was later removed from Cboe’s website, the move remains promising. Ripple CEO Brad Garlinghouse expects more XRP ETF applications to appear on SEC desk soon
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Wealth managers may also consider cryptocurrencies other than XRP, Solana, and Litecoin. If approved, ETF products linked to XRP, Solana, and Litecoin could serve as a channel for more institutions to participate. This will help establish cryptocurrencies as an important part of modern financial markets.
