Chances for a Litecoin (LTC) ETF?

[bluebit25]

(...)So let's discuss. Do you think a Litecoin ETF has a chance? Are there companies that are applying for a LTC ETF (Grayscale, according to the Reddit thread, seems to have announced interest)?

IMO, after the bitcoin ETF was approved, it seems to have paved the way for opportunities for top alts. We have talked about ETH, SOL, XRP,... and the case of LTC will be similar, it's just a matter of time.

I think things will be positive as we move into the bull cycle, where news like this will easily push any top altcoin. But looking back at LTC's position, we must admit that the crowd's attention may have decreased but it is still the leading cryptocurrency in the market.

[Kelward]

There might be an ETH etf but I am pretty sure there will not be a ltc etf. Sure it’s similar to bitcoin and all but nobody really uses it anymore. It was more popular during 2017 when people used it due to smaller fees but now people moved on to ETH l2 solutions.

So even if it was totally possible to have an ltc etf, most likely there will be no demand for it and it would just close down. The ETH etf is the only non-bitcoin crypto I can see that actually gets a spot etf going.

It's true that Litecoin, has got the potentials for an ETF approval, but recently it's not so popular like Ethereum, so I reason in line with your thought that it's demand might not measure up like Ethereum, if it's approved. Ethereum, on the other hand is second to Bitcoin in the hierarchy of all the cryptos, so based on its popularity and potentials for high demand, I believe that it's approval is next in line, we can only predict, buts it's the SEC that has their criteria to determine which project they will approve next.

[btc78]

Just like you said it’s unlikely for sec to approve another etf of cryptocurrency shortly after they just had approved bitcoin’s. There are talks about ethereum etf but even with that i am not that confident. Maybe if bitcoin etf goes really well then it might give way to ethereum etf but litecoin? I don’t think so. There are just not much interest on the coin by the investors let alone the general public. Maybe someday when cryptocurrency is normalized.

[tyz]

There might be an ETH etf but I am pretty sure there will not be a ltc etf. Sure it’s similar to bitcoin and all but nobody really uses it anymore. It was more popular during 2017 when people used it due to smaller fees but now people moved on to ETH l2 solutions.

So even if it was totally possible to have an ltc etf, most likely there will be no demand for it and it would just close down. The ETH etf is the only non-bitcoin crypto I can see that actually gets a spot etf going.

It's true that Litecoin, has got the potentials for an ETF approval, but recently it's not so popular like Ethereum, so I reason in line with your thought that it's demand might not measure up like Ethereum, if it's approved. Ethereum, on the other hand is second to Bitcoin in the hierarchy of all the cryptos, so based on its popularity and potentials for high demand, I believe that it's approval is next in line, we can only predict, buts it's the SEC that has their criteria to determine which project they will approve next.

Sure the popularity and demand for a cryptocurrency impacts the chances of receiving ETF approval. But liquidity and daily trading volume is important too. Ethereum as being the second most popular cryptocurrency, may have an advantage in this regard. However Litecoin also has potential and could still receive approval in the future. The SEC has the final say in determining which projects will receive ETF approval based on their specific criteria.

[Sophokles]

I saw in the social media some of the people were asking about the same questions and some of the expert think that if eth etf got approved then ltc, bch etf can also be possible. But i am personally not sure about the possibility of this buy i think even if there is some application of ltc and other crypto it won't be black rock who will be filling the application.

[Belarge]

Just like you said it’s unlikely for sec to approve another etf of cryptocurrency shortly after they just had approved bitcoin’s. There are talks about ethereum etf but even with that i am not that confident. Maybe if bitcoin etf goes really well then it might give way to ethereum etf but litecoin? I don’t think so. There are just not much interest on the coin by the investors let alone the general public. Maybe someday when cryptocurrency is normalized.

We make decisions that either play well or decline and dissapointes me. Litecoin have been important from day one and its definitely going to be a long prominent project in the system. We shouldn't underrate the results and information cryptocurrency have in store for us because it have lifted so many individuals to uprising standards and have also ruined the plans of many, but either ways, always positive to hits crucial targets in the target.

[Abiky]

The Bitcoin ETF approval by the SEC has marked the sentiment in early 2024 and may be a gamechanger of the whole cryptocurrency market.

Taking into account the general view of the SEC about altcoins, at a first glance it seems unlikely that an ETF could be approved for a crypto other than Bitcoin in the short term. There are several Ethereum ETF applications, but there are doubts if the SEC considers ETH a commodity-like asset due to its centralized launch and management. It was always controversial if the SEC considers ETH a security, although they have eventually denied it.

Now there are a few altcoins which might qualify as a similar "commodity"-like class of asset than Bitcoin, because they had a "fair" PoW distribution without relevant premine, which was similar to Bitcoin's. The biggest are Dogecoin (DOGE), Litecoin (LTC), Monero (XMR) and maybe Kaspa (KAS) and BCash (BCH).

I consider Litecoin the most likely to be approved, for the following reasons:

- There is already an ETF-like Litecoin product, the Grayscale Litecoin Trust.
- Litecoin is one of the oldest altcoins.
- XMR as a privacy coin is generally not looked at well by govermental actors.
- KAS is quite new, and its launch was borderline fair (there was some mining on "Gamenet", where the coin was only known in a Discord group, and only some weeks later they really went public).
- DOGE is perhaps the other one which could be accepted, but I guess many may consider it as a "joke coin", also the high volatility, dependant on Elon Musk's tweets, may play against it.
- BCH? I don't know, the launch was of course identic to Bitcoin's, but the fork could be seen as a consensus break.

I'm surprised to not see a thread about this topic here (there are several on Reddit though, like this one, or even one in r/CryptoCurrency).

So let's discuss. Do you think a Litecoin ETF has a chance? Are there companies that are applying for a LTC ETF (Grayscale, according to the Reddit thread, seems to have announced interest)?

Well, the odds for approving a spot Litecoin ETF is a lot higher than ETH. Especially when the SEC considers the latter to be a security. LTC is similar to BTC, so institutional investment companies can submit their applications without hassle. At least, that's what we hope for. As much as we want market prices to rise, I don't think it's a good idea to institutionalize Litecoin. It will encourage monopolism within the industry.

I'm fine with LTC just the way it is. The cryptocurrency is fairer and more decentralized than BTC. If we let "Wall Street" get in, we'd be embracing the middleman with open arms. That's not what crypto is about. It's about removing middlemen from the system to bring banking to the unbanked. Luckily, it's possible to start a new fork if things go south in the long run. As long as there are people standing in support of decentralization. LTC will survive for generations.

[Volimack]

The crypto market has recovered very well not to mention, Bitcoin has its biggest bull event, which will be the halving. But Litecoin is poised for a third halving of its own in the coming months, with Bitcoin rising in value following ETF approval And ahead of the big event, LTC is enjoying some gains, doubling from lows. But it will be up to the investor to buy and hold LTC coins.