Grayscale, Coinshares File For Litecoin Spot ETF

Gray Asset Managers and Coinshares Join the Race to Launch ETF SPOT LITECOIN (LTC) Reactions from the crypto community range from excitement to criticism.

Litecoin Spot ETF: Crypto Community Weighs In

On January 24, Coinshares File an S-1 filing form With the U.S. Securities and Exchange Commission (SEC) to launch Coinshares Litecoin ETF (the “Trust”), a spot exchange-traded fund that provides investors with exposure to the cryptocurrency LTC.

Meanwhile, Grayscale has also filed a Form 19B-4 with the securities regulator to list and exchange gray Litecoin trusts, indicating a potential conversion to ETFs. In doing so, both asset managers join Canary Capital in an effort to launch the first Litecoin ETF.

This development has stimulated a lot of euphoria in the crypto community as the ETF is generally spot on with direct institutional adoption which can translate into significant price growth as seen in the Bitcoin market. However, some market analysts have attacked the idea of ​​a SPOT ETF which they believe shows little potential for success.

According to popular crypto expert, Ali Martinez, the Litecoin market appears to be largely unprepared for a spot ETF considering that the asset has maintained the same price range for the past eight years. Martinez Suits Asset managers to launch a USDT ETF would allow investors to earn a return in the worst case scenario.

In another X post, cryptoanalyst with username djthistle01 He also questions the idea of ​​an LTC ETF especially since the asset has consistently fallen against Bitcoin over the past 10 years.

However, other analysts argue that Litecoin’s network activity makes up for its lack of broad price action. according to Businessman Tarun Tejpal, The number of LTC transactions has been rising since November 28th. Notably, between January 13-20, 2025, Litecoin processed over $69 billion in transactions translating to an average of $10 billion per day.

Another LTC enthusiast has also named it Aristotle Money Highlight The asset accomplished as the most used cryptocurrency for payment in 2024 according to data from BitPay, showing significant interest in the market.

Will the Litecoin SPOT ETF succeed?

In a somewhat strange way, the idea of ​​the Litecoin Spot ETF has drawn a division between crypto enthusiasts and analysts. It is interestingThis debate will likely be settled soon as LTC will likely be the next crypto asset to secure a spot ETF spot ahead of other altcoins including Solana and XRP.

This assumption is based on developments such as Recent introduction of the S1 process By Canary Capital refers to an ongoing dialogue between the asset manager and the SEC. At the time of writing, Litecoin is trading at $123.91 after a 0.72% increase in the past day.