Is Litecoin the Third Contender for a Cryptocurrency Spot ETF?

Cryptocurrency A to Z

Following Bitcoin and Ethereum

High Possibility of Being the 3rd to Launch

U.S. SEC Begins Review

Litecoin Price Surges

Cannot Trade in Korea Due to Delisting

Litecoin is being considered as a cryptocurrency with a high possibility of launching a spot exchange-traded fund (ETF) following Bitcoin and Ethereum.

According to the cryptocurrency industry on the 2nd, the U.S. Securities and Exchange Commission (SEC) has begun reviewing the listing application (19B-4) for a Litecoin spot ETF submitted by Canary Capital. Global asset management firms Grayscale and CoinShares have also submitted 19B-4s for a Litecoin spot ETF.

The market believes that a Litecoin spot ETF is more likely to be approved before cryptocurrencies with higher market capitalizations like Ripple and Solana. Unlike Ripple and Solana, which are classified as securities, Litecoin is considered a commodity. The fact that it is a cryptocurrency derived from Bitcoin, which already has a spot ETF, further increases the likelihood of approval. Eric Balchunas, a Bloomberg ETF analyst, predicted, "Litecoin is already regarded as a commodity and is likely to be the first altcoin ETF to be listed this year."

As expectations for spot ETF approval grow, Litecoin's price has also surged. According to the cryptocurrency exchange Binance, Litecoin rose about 20% over two days, surpassing the $130 mark for the first time in 12 days.

Investors are also predicting a long-term price increase for Litecoin. On-chain data analysis platform IntoTheBlock reported, "80% of addresses holding Litecoin are long-term investors who have held it for over a year," adding, "In January, the daily active addresses reached 1.37 million, surpassing Bitcoin and Ethereum."

In Korea, trading Litecoin is not possible. Previously, domestic cryptocurrency exchanges delisted Litecoin following the enforcement of the Act on Reporting and Using Specified Financial Transaction Information.

Hwang Doo-hyun, BloomingBit Journalist cow5361@bloomingbit.io