Litecoin (LTC) founder Charlie Lee has expressed optimism about the possible approval of a Litecoin exchange-traded fund (ETF).
In a post on X, Lee broke his silence regarding Canary Capital’s Litecoin ETF application. His comments come at a time when industry experts remain optimistic that regulators will approve more crypto ETF products.
Litecoin founder breaks his silence on LTC ETF
Lee believes a Litecoin ETF would help more people see Litecoin as a serious option in the cryptocurrency market. LTC has maintained its relevance despite the rise of newer alternative altcoins. An ETF would allow institutional investors and traditional market participants to invest in Litecoin without directly purchasing or trading the cryptocurrency.
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This easier access could bring more capital into Litecoin, increasing its value and helping it grow in the long term. Canary Capital has filed with the Securities and Exchange Commission (SEC) for a Litecoin ETF. This filing is part of a wave of cryptocurrency ETF filings that have attracted investors recently. Meanwhile, the application focuses on exposure to the LTC price held by the Trust.
Litecoin’s key features make it attractive to many institutional investors. Thus, investing in Litecoin offers unique exposure to a proven and reliable cryptocurrency. In addition to the asset manager’s move, CoinShares operates an exchange-traded Litecoin 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 application is a positive sign for the cryptocurrency industry. He believes that financial products linked to digital assets will help more people adopt cryptocurrencies and reduce market volatility.
Also, the capital inflow will lead to an increase in the LTC price in the long term. With institutional support, Litecoin could catch up with its main competitors such as Ethereum (ETH) in terms of market capitalization. According to market data, Litecoin has a market capitalization of over $5.3 billion. LTC has a circulating supply of over 84 million LTC. At the time of writing, the coin was trading at $71.19.
Crypto ETF outlook shifts, SOL, XRP and now Litecoin
After Bitwise filed the first application for an XRP ETF locally, Canary Capital followed suit. The trend in these crypto ETFs highlights the growing institutional interest in digital assets beyond Bitcoin and Ethereum. When spot Bitcoin ETFs launched in early 2024, several analysts predicted that other crypto ETFs would follow.
To date, VanEck and 21Shares have submitted their respective Solana ETF applications. Although the 19b-4 applications were later taken down from Cboe’s website, the gesture is still promising. Ripple CEO Brad Garlinghouse expects more XRP ETF applications to hit the SEC’s desk soon
enough.
Asset managers could also consider cryptocurrencies other than XRP, Solana and Litecoin. If ETF products pegged to XRP, Solana and Litecoin are approved, this could serve as a channel for more institutions to participate. This will help establish cryptocurrencies as an important part of modern financial markets.
