Grayscale and Coinshares are vying to launch the first Litecoin (LTC) spot ETF, sparking a lively debate in the crypto world. Some are thrilled, others are skeptical.
The ETF Race Heats Up
Coinshares filed paperwork with the SEC to launch their Litecoin ETF. Not to be outdone, Grayscale also filed to list their Litecoin Trust, hinting at a potential conversion to a spot ETF. They’re both racing Canary Capital to be the first to market.
The excitement stems from the potential for increased institutional investment and a subsequent price surge, mirroring what happened with Bitcoin.
Skeptics Weigh In
However, not everyone’s on board. Crypto expert Ali Martinez thinks a Litecoin ETF is premature, pointing to the coin’s stagnant price over the past eight years. He suggests a USDT ETF would be a more promising venture. Analyst djThistle01 echoes this sentiment, highlighting Litecoin’s long-term decline against Bitcoin.
The Litecoin Defense
But Litecoin’s supporters aren’t backing down. Entrepreneur Tarun Tejpal emphasizes the rising transaction volume, particularly the over $69 billion processed between January 13th and 20th, 2025. Another enthusiast, Aristotle’s Money, cites BitPay data showing Litecoin as the most used cryptocurrency for payments in 2024.
The Verdict? Still Out
The debate rages on, but a decision may be coming soon. With Canary Capital actively engaging with the SEC, Litecoin could be the next cryptocurrency to get the spot ETF green light, beating out competitors like Solana and XRP.
Currently, Litecoin is trading around $123.91.
