 to approve the first Litecoin LTC ETF.){kind=link}
Canary Capital has submitted an S-1 with the U.S. Securities and Exchange Commission (SEC) to approve the first Litecoin LTC ETF.
If authorized, the ETF will offer widespread direct exposure to Litecoin (LTC) to institutional and retail investors alike. The news has buoyed investor sentiments to a good high, with Litecoin prices jumping significantly.
At the press time, LTC is trading up over 6% at $71.79, according to data from CoinMarketCap. The coin’s 24 hours trading volume stands at $841.92 million, making it a rise of 162.84%.
What Makes Litecoin Attractive?
Litecoin ranks second in terms of availability across cryptocurrency ATMs and is accessible on practically all cryptocurrency exchanges, wallets, and payment providers.
Former Google developer Charles “Charlie” Lee founded the alternative cryptocurrency Litecoin (LTC) in October 2011. Although there were certain changes made, it was derived from the open-source code of Bitcoin.
Similar to Bitcoin, the foundation of Litecoin is an unrestricted worldwide payment network that is open-source. Litecoin is not the same as Bitcoin in a few ways, like having a hashing method called Scrypt and a faster block creation rate.
Will Litecoin ETFs Gain Traction?
The world market saw a dramatic change in early 2024 when the SEC approved spot bitcoin ETFs. This action not only supports the legitimacy of cryptocurrencies but also creates opportunities for global markets to investigate financial products that are comparable to them.
Since they can now contain regulated cryptocurrency assets, this should appeal to investors who frequently diversify their portfolios across international markets.
However, despite the fame of Bitcoin ETFs, the market appreciation for Ethereum ETFs came in a little underwhelming for investors. The total inflows that Bitcoin ETFs saw soon after receiving the green signal from the US SEC proved that Bitcoin was the OG-cryptocurrency in the market.
It improved investor trust in cryptocurrencies and the stability of the global market. The demand for spot Ethereum exchange-traded funds (ETFs) has not surpassed that of spot Bitcoin ETFs. Among the obstacles are the ETFs’ lack of staking yield and the challenge of promoting Ethereum to investors.
Now, with even a Solana ETF in the pipeline, more and more crypto providers are turning to give a better-regulated option to investors. This will eventually result in higher competition among the crypto ETF providers and even sloppy inflows.
Despite all this, it is likely that those who can market themselves better, have a compelling fee, and provide investors with a wide variety of options will eventually see success in the crypto ETF market.
Will LTC Keep Rising In The Future?
The ETF news has given Litecoin the necessary momentum it needed. If the optimistic sentiment keeps rolling out, it is likely that Litecoin will increase by 23.97% to reach $ 86.81 in the coming month.
Market parameters at present show that the coin’s Fear & Greed Index is reading 65 (Greed), and the current sentiment is Neutral. Over the previous 30 days, Litecoin had 16/30 (or 53%) green days and 2.70% price volatility.