Grayscale and Coinshares active managers joined the race to launch an ETF Spot Litecoin (LTC), arousing reactions from the crypto community ranging from enthusiasm to criticism.
ETF Litecoin Spot: the cryptographic community intervenes
January 24, Coinshares submitted an S-1 registration form With the Securities and Exchange Commission (SEC) of the United States to launch the Coinshares Litecoin ETF (the “Trust”), a cash negotiated cash flow fund which offers investors an exposure to LTC cryptocurrencies.
Meanwhile, gray levels also filed a 19b-4 form With the securities regulatory organization to register and negotiate its Grayscale Litecoin Trust, suggesting potential conversion to an ETF Spot. In doing so, the two asset managers join Canary Capital in order to launch the first ETF Litecoin Spot.
This development has aroused a lot of euphoria in the Crypto community, because an ETF Spot generally promises direct institutional adoption, which can result in significant prices growth, as seen in the Bitcoin market. However, some market analysts attacked the idea of Litecoin Spot ETF which, according to them, presents little success potential.
According to Ali Martinez, a renowned expert in cryptography, the Litecoin market does not seem largely ready for an ETP in cash, since the asset has maintained the same price range in the past eight years. Martinez elbow The asset managers should rather launch an USDT ETF which would allow investors to obtain an implementation of bets at worst.
In another article X, crypto analyst with username Djthistle01 Also calls into question the idea of an ETF LTC, especially since the asset has constantly decreased compared to bitcoin in the past 10 years.
However, other analysts claim that the activity of the Litecoin network compensates for its significant lack of action on prices. According to The entrepreneur Tarun Tejpal, The number of LTC transactions has been increasing since November 28. In particular, between January 13 and 20, 2025, Litecoin treated more than $ 69 billion in transactions, which represents an average of $ 10 billion per day.
Another SLD enthusiast named Aristotle’s Money too highlighted The asset has become the most used cryptocurrency for payment in 2024, according to Bitpay data, demonstrating significant interest in the market.
Will an ETF Litecoin Spot succeed?
In a rather strange way, the idea of Litecoin Spot ETF created a division among cryptography enthusiasts and analysts. Interesting factThis debate will probably be settled soon because LTC is potentially the next cryptographic asset to secure an ETF Spot in front of other altcoins, including Solana and Xrp.
This hypothesis is based on developments such as Recent submission of an S1 amendment By Canary Capital, indicating a continuous dialogue between the asset manager and the dry. At the time of writing this article, Litecoin is negotiated at $ 123.91 after a gain of 0.72 % during the last day.
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