Topic: Chances for a Litecoin (LTC) ETF? - page 2. (Read 341 times)

I believe it is a matter of time for Litecoin to also get its ETF in the markets, but I believe it will be after Ethereum gets its own.
You have got some valid points on why Litecoin is a very good candidate for getting that approval.
I would love to also see other coins like Monero and Dogecoin to get their EFT approved, but in the case of Monero, I agree with you that the SEC would never dare to give that huge advertisement to a project which is pretty much frown upon by the federal government and law enforcement agencies or pretty much all the civilized world. On the other hand, Dogecoin was conceived as a joke, but we all can agree it was transcended the joke/meme territory and actually became an asset which people can take seriously if keep in mind it's market capitalization and volume.

What is a coin without volume and liquidity? Basically nothing, and Dogecoin has both the volume and liquidity, it only thing it lack for it to get the approval faster is the aura of seriousness which other alternative coins give off.

Still, I am expecting for the expectrum and variety of ETF to be quite reduced at first, it could take years before we see Dogecoin getting that treatment, Litecoin is likely to get it after Ether.

Let's see what already exists. I've currently found three financial products for LTC:

Grayscale Litecoin Trust (LTCN) (US)
ETC Group Physical Litecoin ETP (ELTC) (Germany/UK) (more info)
Coinshares Physical Litecoin ETN (LITE) (Switzerland/UK) (more info)

If there are more, please add

When googling I briefly thought that BlackRock owned LTC already, but it was the LTC share from "LTC Properties, Inc."

I also agree that Solana is probably not a good candidate for an ETF. It's one of the most centralized coins out there (after XRP and BNB perhaps) and the SEC already classified it as a security, and that would probably make an ETF impossible.

You think those are the criteria US SEC used to consider an ETF to be accepted? You need to understand that once a coin is consifer as a security by Security exchange commission, you are in big battle to with them because you are about to lose money to the government because of the sue that will follow after. Any coin that is term as security always have issues of breaking the SEC law and you want to categorized Solana because of demand? No, Litecoin will get that approval before Solana get one.

You didn't even consider what has happened to Solana with FTX and pending case of security that they have been avoiding. What about the $1.16B of Solana they have to liquidate to get back the exchange running and to say that this worth was around September last year. The coin has pumped massively due to their underground things and you think Solana will get such a quick approval? I don't think so because if it took Bitcoin 10 years since the first time of fillings to 2024, Solana application might just get it's way into the junk yard.

Demand for Solana might be higher but it has only existed for like 3-4 years, and supply is still heavily held by venture capitalists so I doubt it will get an ETF any time soon. Litecoin on the other hand, has existed for far longer with little to no scandals and stuff and far better supply distribution.

I doubt LTC will be accepted by ETF after BTC and ETH, simply because there are so many other altcoins, if there are other coins that will be voted on by the SEC, I predict Solana will be next, there is no particular reason but Solana has demand higher.

Funnily enough, I actually think there's a decent chance that LTC might get an ETF earlier than ETH, simply because LTC is pretty simple and boring like Bitcoin, unlike ETH whereas lots of controversial things happened in the past(other than Consensys and the Ethereum Foundation dumping ETH). ETH only gets an ETF first if the ETF issuers sort of force it because ETH has far higher demand.

As for the other coins you've mentioned, I doubt it.

As SEC are looking for excuses for not-listing ETH ETFs. So, Litecoin would surely be a good option considering it's economics is similar to bitcoin. Even though it's a different algo, it's supply are limited, the coin is POW making it more similar to bitcoin than any other popular altcoins.
As you mentioned, BCH is another good alternative which also has a more active developer team than LTC but again, ETF listing are more initiated and carried out by investment firm than the coins developer. There are news of Ripple paying lobbyist for ETF listing so the game of listing would be an entertaining one.

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)?