Key Takeaways
- The Bloomberg analysts Erice Balchunas and James Seyffart have unveiled their ETF approval rates for different cryptos.
- Per this report, the Litecoin ETF registered the highest potential approval rate with 90%, leaving behind Solana, DOGE, and XRP.
- Following the news, LTC has registered a daily uptrend of over 15% and is currently trading at $131.63 in the crypto market.
The analysts of Bloomberg, one of the world’s leading financial news and information companies have unveiled their approval odds for the ETFs in the market. Per this latest data, the ETF with the most chance of getting approved this year is, none other than LTC. This development has created a huge wildfire in the crypto economy and ended with the LTC token surging over 15% today on the 11th of February 2025.
This article will explore the latest information in the crypto world in detail. Furthermore, we will also look into what this news entails and how it will impact the market.
Litecoin ETFs: Canary Capitals & GreyScale
A Litecoin ETF is an investment pool allowing retail and institutional investors to gain exposure to the Litecoin token’s market performance, without needing to own it directly. In this scenario, the investor puts their money in a pool rather than resorting to direct exchange trading. There are currently two Litecoin ETFs waiting to get approved by the SEC: Greyscale’s and Canary Capital’s ETF.
Grayscale Litecoin Trust is one of the world’s first proposed Litecoin ETFs in the crypto realm. It was introduced to address the many underlying challenges faced by retail investors like buying, selling, and storing their LTC coins. However, there are also underlying associated fees for managing your crypto. In the case of Grayscale, it is 2.5%.
Canary Capital is an American Digital Asset Management and crypto investment firm. They started proposing for LTC ETF in October 2024 and filed an S-1 application with the SEC (Securities and Exchange Commission) soon after. Canary Capital is aiming to take advantage of widespread adoption and demand for cryptocurrencies by adding LTC into the mix of previously successful Bitcoin ETFs.
Bloomberg Predicts 90% Approval Rate For Litecoin
Bloomberg ETF analysts have unveiled their ETF approval rate for the various proposed ETFs. In this report, the Litecoin ETF registered the highest potential approval rate with a whopping 90%, leaving behind Solana (70%), DOGE (75%), and XRP (65%) in the dust. The analysis was put forward by Erice Balchunas and James Seyffart, two of the leading ETF analysts in the industry.
This 90% approval was cemented by the recent acknowledgment of the 19b-4 forms of Litecoin ETF, with Bulchanus stating that LTC products “check all the boxes” with no visible reasons for the SEC to withdraw the filing. Furthermore, being the fork of BTC and using the same consensus proof-of-work algorithm will likely favor the coin in identifying as a commodity, which will be crucial in the later stages of ETF approval.
Projected Inflows & Competition
Various industry experts predict that the Litecoin ETF on approval from the SRV will attract significant inflows. Current predictions estimate that this ETF will see a similar adoption rate to the spot Bitcoin ETFs. Per this, the spot Litecoin ETF has the potential to attract about $300-$500 million in its debuting year, making it the next big thing in the crypto sector.
However, the ETF could face significant competition in the market, especially from fellow ETF rivals like Solana, which is predicted to bring billions of dollars in inflow if it gets approved by the US SEC. Even with all this, the main thing that will have the final say in ETF inflows will be the regulatory measures adopted under the reign of Donald. J. Trump.
ETF News’ Impact On The LTC: Market Performance
In the last 24 hours following the Bloomberg analysis, Litecoin has risen over 15% and is currently trading at $131.63. As of 11th February 2025, the coin is ranked #15 on its market capitalization, estimated to be $9.74 billion with a circulating supply of 75.51 million tokens. This puts its weekly growth at a whopping 30% with a price hike of over $30.
However, this will be nothing compared to how high the LTC will surge if the Canary Capital & Greyscale ETFs get approved. There is a high probability that the LTC token will surge and get close to its all-time high of $412 registered on the 10th May 2021. Further updates regarding this matter, will play a key role in determining the growth of LTC tokens in the market.
