Eric Balchunas, a senior ETF analyst at Bloomberg, recently identified Litecoin (LTC) as a strong contender for the next digital asset to secure an ETF in the United States. In a post on X, Balchunas noted that Litecoin's classification as a commodity, akin to Bitcoin, gives it an advantage for ETF approval over XRP and Solana, which are currently embroiled in legal battles and have been classified as securities. Additionally, Litecoin's market cap is significantly smaller, standing at $9.4 billion compared to XRP's $148 billion and Solana's $107 billion. Many consider Litecoin as digital silver to Bitcoin's gold.
He suggested that after the anticipated approval of Bitcoin and Ethereum combo ETFs, Litecoin could be next in line.
Litecoin has experienced a notable increase, rising by 10% in a single day, highlighting the market's favorable response to these developments.
Fox Business has recently placed Litecoin just below Bitcoin on their ticker, reflecting its increased market relevance. This visibility not only showcases Litecoin's performance but also signals to investors its growing acceptance in mainstream financial discussions.
Likewise, CNBC has added Litecoin to its ticker, reflecting renewed interest in the cryptocurrency. Such actions by major networks may affect investor perception and market behavior, enhancing Litecoin's credibility among both retail and institutional investors.
Currently, the only Litecoin ETF submission under review is from Canary Capital, positioning it as a potential first and only to get approved. Filed on October 15, 2024, the proposal is under review by the U.S. Securities and Exchange Commission (SEC), which can take up to 240 days to render a decision, depending on extensions. If approved, Canary Capital’s ETF would be the first of its kind, marking a significant milestone for Litecoin. However, similar to the Bitcoin ETF approvals in early 2024, it’s likely that other major players—such as BlackRock, Fidelity, Bitwise, and VanEck—will soon follow suit, further driving adoption and investment interest in Litecoin.
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