Spot Litecoin ETF: Founder Charlie Lee Teases Possibility
Highlights
- Is Litecoin set for a spot ETF product approval?
- The network founder Charlie Lee has weighed the possibilities
- This speculation comes amid full-fledged Bitcoin and Ethereum ETFs trading in the US and Hong Kong
The crypto industry is likely to witness an influx of different digital assets Exchange Traded Funds (ETFs) as Litecoin proponents are now mulling the possibility of having a LTC ETF.
Litecoin Structural Similarities With Bitcoin Defined
Litecoin founder, Charlie Lee recently graced an interview where he spoke with optimism about the potential of a spot Litecoin ETF. He seemed very confident about getting the United States Securities and Exchange Commission (SEC) to approve the product, citing that it is a matter of “when” and not “if”.
Lee’s optimism stems from a comparison that he made between Bitcoin and Litecoin. Like BTC, Litecoin utlizes a Proof-of-Work (PoW) consensus algorithm. It also has a commodity-like status, making it an eligible candidate for an ETF. These structural similarities with BTC fuels Lee’s confidence in the eventuality of a spot Litecoin ETF.
He acknowledged that the demand for the potential Litecoin ETF may not be at par with that of Bitcoin at the beginning.
However, he is positive that there would be an optimistic prospect in the long-term. The crypto industry is currently on a growing trend and Lee sees the possibility of investors discovering Litecoin’s value proposition and growth potential as it progresses.
Beyond spot Litecoin ETF, ETH Version Might be Denied
The commodity/security categorization puts crypto assets like Ethereum at a disadvantage, considering that it is a Proof-of-Stake (PoS) crypto that has been controversially tagged as security by the U.S. SEC. Already, it has hindered the applications for spot Ethereum ETFs from getting an approval from the Commission.
For more than six months, applicants for spot Ethereum ETFs have been waiting for a decision from the SEC but instead, they have ended up receiving a series of postponements.
Barely seven days ago, the U.S. SEC postponed its decision on Grayscale‘s proposal for spot Ethereum ETF. Some market observers believe that the delays would eventually translate into denial from the SEC in a few weeks.
Besides his take on spot Litecoin ETFS, Lee also expressed his reservation towards getting the SEC to approve Ethereum ETFs. While he thinks that obtaining regulatory approval for an Ethereum ETF may prove challenging, he perceives a higher demand for the offering if it is ever approved, compared to that of LTC.
His stance is based on the fact that Ethereum has a broader utility and ecosystem.
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