- Litecoin founder Charlie Lee expressed confidence in the upcoming approval of a Litecoin ETF following Canary Capital’s recent LTC ETF application.
- A market analyst think that a Litecoin ETF is inevitable noting that Litecoin is already represented in Europe through exchange-traded products like $LITE in Switzerland and $ELTC in Germany.
The past week witnessed a surge in ETF applications submitted to the U.S. SEC, with the most recent filing for a Litecoin ETF by Canary Capitals. Following this news, Litecoin founder Charlie Lee voiced great optimism concerning the potential approval of a Litecoin ETF.
Lee highlighted Litecoin’s growing institutional demand. Talking to a leading news outlet, Lee evidenced his claims by pointing to the latest ETF application by Canary Capitals which was seconded by the noticeable performance of the Grayscale Litecoin Trust (LTCN), which is currently trading at more than double its net asset value (NAV).
This growth averages more than 2% daily for the dubbed “silver” to Bitcoin’s “gold.” Additionally, these metrics point towards market confidence in the digital asset. For Lee, these signs of demand could serve as a strong argument for the ETF’s approval.
Comparing Litecoin to Bitcoin, he noted their shared peer-to-peer transactional nature and emphasized that Litecoin, like Bitcoin, has been recognized as a commodity. This, he argued, increases the likelihood of the Litecoin ETF’s approval.
It is worth mentioning that Litecoin’s ETF request comes at a time when the broader trend is oozing out great institutional interest in cryptocurrencies. This follows this year’s Bitcoin and Ether ETFs approval by the U.S. SEC.
Lee is confident that the Litecoin ETF will soon be approved, citing the increasing acceptance of crypto ETFs. On the other hand, James Seyffart, an ETF analyst at Bloomberg Intelligence highlighted that a Litecoin ETF is inevitable noting that Litecoin is already represented in Europe through exchange-traded products like $LITE in Switzerland and $ELTC in Germany.
At the time of writing, LTC is currently swapping hands with $71.02 marking a 6.24% and and 5.88% surge in the past week and month respectively. Additionally, its 24-hour trading volume has seen a 31.15% increase.
Litecoin in Mini- Bull Run
Renowned market data platform Santiment has pinpointed a mini-bull run in Litecoin (LTC). The platform cited LTC’s recent surge above the $73 mark, marking the first time since July.
Driving this upward momentum, In addition to the ETF application boost, Santiment highlighted two primary factors. First, Litecoin’s on-chain transaction volume has experienced a remarkable surge. In just 24 hours, the volume soared to $4 billion, the highest level since June 2023.
Secondly, retail sentiment surrounding Litecoin has also seen a significant uptick. Social media discussions about LTC have risen notably, focusing on recent developments and initiatives within the Litecoin ecosystem. This positive sentiment often attracts more buyers, contributing to price increases. Some investors even rely on social media sentiment as part of their trading strategies.
