Litecoin founder Charlie Lee expressed his excitement about Canary Capital’s recent application for a Litecoin ETF. This comes amid growing interest from both institutional and retail investors. Additionally, Mr. Lee also expressed confidence that the LTC ETF application will be approved soon as crypto ETF products take the lead.
Is Litecoin ETF approval coming soon?
According to FOX journalist Eleanor Terret, in a recent statement, Lee highlighted the growing demand for Litecoin, as evidenced by the rise in value of Grayscale’s Litecoin Trust. “Institutional investor interest in Litecoin is very high,” Lee said.
Additionally, he highlighted that the price of Grayscale Litecoin Trust (LTCN) is currently more than double its net asset value (NAV). Lee also pointed out that Litecoin shares many similarities with Bitcoin, and both are considered commodities.
“Given that Litecoin is a Bitcoin-like product, we expect the ETF to be approved soon,” he added. On October 15, Canary Capital filed a Form S-1 application with the U.S. Securities and Exchange Commission (SEC) seeking approval for the Spot Litecoin ETF.
With this application, Canary Capital becomes the first company to apply for a Litecoin ETF in the United States. This marked a major development in the crypto investment landscape, where most ETF filings have historically focused on more prominent cryptocurrencies such as Bitcoin, Ethereum, and XRP.
🚨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
After the latest filing, LTC price rose significantly, surging to a monthly high of $75.88 and rebounding from a low of $62.12. However, due to uncertainty surrounding approval and overall market volatility, Litecoin price is currently trading at $71.44, down 5.04%.
Analyst opinion on LTC ETF application
At the time, Bloomberg Intelligence ETF analyst James Seifert said, “Canary, a new ETF issuer that previously applied for an XRP ETF, has now submitted an application for a Litecoin ETF.” The application attracted attention.
Seyffart also pointed out that Litecoin already exists in Europe through exchange-traded products (ETPs). “There are already several ETPs holding Litecoin, such as CoinShares’ $LITE in Switzerland and ETC Group’s $ELTC in Germany,” Seifert commented. He also mentioned the existence of the Grayscale Litecoin Trust in the US, which trades under the symbol LTCN.
This latest ETF filing stands out in that it focuses solely on Litecoin, unlike previous filings that primarily targeted major cryptocurrencies. Eric Balchunas, senior ETF analyst at Bloomberg, also commented on the significance of this filing, saying:
“Not only is this the first Litecoin ETF in the US, it could also be the first in the world. Even 21Shares doesn’t have it at this time.”
Canary Capital’s move comes on the heels of the company filing for an XRP ETF on October 8th, which drew significant attention from the crypto community. XRP’s filing followed a similar move by leading crypto asset management company Bitwise. If approved, both Litecoin and the XRP ETF would provide traditional investors with a new way to gain exposure to these assets.
However, approval for both of these ETFs hangs in the balance as the SEC remains cautious. Following the failure of the Spot Ethereum ETF launched in July 2024, authorities are expected to maintain increased scrutiny of similar products.
Also read: XRP ETF Boost: Solana and WallitIQ expected to reach $1,200 by December
