Charlie Lee, the founder of Litecoin (LTC), has expressed optimism regarding the potential 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 remarks come as industry experts remain optimistic that regulatory bodies may approve more crypto ETF products.
Litecoin Founder Breaks Silence on LTC ETF
Lee believes that a Litecoin ETF would help more people see Litecoin as a serious option in the cryptocurrency market. LTC has maintained relevance despite the rise of newer alternative altcoins. An ETF would let institutional investors and traditional market players invest in Litecoin without directly buying or handling the cryptocurrency.
This easier access could bring more capital into Litecoin, increasing its value and helping it grow in the long run. Canary Capital has applied for a Litecoin ETF with the Securities and Exchange Commission (SEC). This application is part of a wave of cryptocurrency ETF filings that have attracted investors lately. Meanwhile, the filing is focused on providing exposure to the price of LTC held by the Trust.
Litecoin’s key features make it attractive to many institutional investors. As such, investing in Litecoin offers a unique exposure to a time-tested and reliable cryptocurrency. Besides the move from the asset management firm, CoinShares operates a Litecoin-based exchange-traded product in Switzerland. Grayscale Investments bagged approval from the Financial Industry Regulatory Authority (FINRA) four years ago to offer a dedicated Litecoin Trust.
Charlie Lee believes the ETF application is a positive sign for the cryptocurrency industry. He thinks financial products linked to digital assets will help more people adopt cryptocurrencies and reduce market fluctuations.
Also, the capital influx will fuel an LTC price rally in the long term. With institutional backing, it may chart a path toward catching up with its core rivals like Ethereum (ETH) per market cap. According to market data, Litecoin has a market cap of over $5.3 billion. LTC has a circulating supply of over 84 million LTC. As of writing, the coin was trading at $71.19.
Crypto ETF Outlook is Shifting, SOL, XRP, and Now Litecoin
After Bitwise filed the first spot XRP ETF application, Canary Capital followed its footsteps. The trend with these crypto ETFs underscores the growing institutional interest in digital assets beyond Bitcoin and Ethereum. When Spot Bitcoin ETFs went live at the beginning of 2024, several analysts predicted that other crypto ETFs would follow.
So far, VanEck and 21Shares have submitted their respective Solana ETF filings. Although the 19b-4 filings were later pulled down from the Cboe website, the gesture is still promising. Brad Garlinghouse, Ripple CEO, expects more XRP ETF filings to appear on the SEC’s desk soon
enough.
Asset managers may also consider cryptocurrencies other than XRP, Solana, and Litecoin. If ETF products linked to XRP, Solana, and Litecoin receive approval, it might serve as a channel for more institutions to get involved. This will help establish cryptocurrencies as a key part of modern financial markets.
