Following the successful launches of Bitcoin and Ethereum spot exchange-traded funds (ETFs), Wall Street firms are doubling down on crypto-focused investment products. Leading digital asset managers, Grayscale and CoinShares, have submitted applications with the US Securities and Exchange Commission (SEC) to list ETFs backed by Litecoin (LTC), Ripple (XRP), and Solana (SOL).
Grayscale And CoinShares Propose Litecoin, Ripple, And Solana ETFs
The key development was first reported by Nate Geraci, the president of the investment advisory firm The ETF Store. He wrote in an X post that the New York Stock Exchange (NYSE) had filed a 19b-4 form to list and trade Grayscale’s Litecoin Trust (LTCN).
The Grayscale Litecoin Trust, launched in 2020, is one of the first securities that invests exclusively in and derives its value from the price of Litecoin (LTC). The product allows investors to gain exposure to the cost of LTC without directly buying, storing, or safeguarding the cryptocurrency. LTCN shares are intended to track the price of LTC, bar the applicable fees, and other expenses.
NYSE’s 19b-4 filing aims to address and fix issues related to crypto investment and will ensure security and robust rules around their custody.
Grayscale also hopes to convert its Grayscale Solana Trust (GSOL) into a spot Solana ETF, serving the same purpose as its Litecoin counterpart. The company was supposed to receive a comment on the filing from the SEC on January 23, but no action has been taken, suggesting that the review deadline was extended so that the regulator can carefully consider the proposal under the new pro-crypto leadership.
Meanwhile, CoinShares also filed applications for two new crypto ETFs, one for Litecoin and the other for Ripple (XRP). The proposed spot Ripple ETF aims to replicate the price performance of XRP while simplifying the challenges with direct custody. Similarly, other ETF issuers, including Bitwise, ProShares, WisdomTree, and REX Shares also filed for XRP-focused exchange-traded products (ETPs). These filings are proof that there is a growing demand for crypto investment products from traditional finance investors.
Trump’s SEC Forms Task Force To Develop Crypto Regulatory Framework
The LTC, SOL, and XRP filings came on the heels of President Donald Trump assuming office and promising to support the crypto sector by establishing a pro-crypto SEC. Mark Uyeda, the acting chairman of the agency, who assumed the role after former chief Gary Gensler’s resignation, has formed a crypto task force that will be responsible for developing a regulatory framework for digital assets.
The primary goals of the SEC’s “Crypto 2.0” task force include clarifying existing regulations and establishing pathways for crypto businesses to register with the regulator, crafting disclosure frameworks to reduce the confusion surrounding legal compliance in the crypto market, and coordinating with other federal agencies like the Commodity Futures Trading Commission (CFTC) and state counterparts to create awareness.
Uyeda will serve as the SEC chairman until Trump-nominated former commissioner Paul Atkins is confirmed. Atkins has been a vocal proponent of cryptocurrencies and will lead the charge in establishing robust crypto policies. Industry leaders are anticipating a more favorable regulatory environment during Trump’s second term, as indicated by the wave of crypto-focused ETF applications.
Litecoin Struggles As Whales Expect Prices To Fall
Despite the positive development surrounding the potential spot Litecoin ETF, the price of LTC has struggled to make any major moves this week. A major catalyst for the pullback has been whales continuing to dump their holdings, resulting in its price declining by almost 20% from its 2025 high.
According to data compiled by on-chain analytics firm Santiment, Litecoin whales have been the net sellers of LTC, which is typically a negative sign for any cryptocurrency because these large-scale holders are often seen as being more sophisticated and experienced investors. Most whales took profits when the price peaked at $141 last week.
While the whales sold their LTC at the top, they are yet to return to the market. This could suggest that they are expecting Litecoin’s price to drop even further before restarting their accumulation strategy.
Additionally, on-chain data revealed that the Litecoin hash rate fell sharply, indicating network activity has slowed. This week, the hash rate dropped from a high of 1.99 TH/s to 1.83 TH/s. The falling rate also coincides with the ongoing decline in the number of transactions processed on the blockchain.
ETF Approval Could Propel Litecoin (LTC) To $200
These factors are risky for the price of LTC as long as it remains below the $141 level. Analysts suggest that if the bearish sentiment persists, then the price could stoop to as low as $86.85 – 25% below the current level. On the other hand, if the Litecoin ETF approval odds rise, then there could be a bullish breakout, propelling LTC to a potential valuation of $200.
Polymarket data shows that 75% of traders believe that Litecoin spot ETFs could be approved by the SEC. This is largely because Litecoin is viewed in the same light as Bitcoin, which the regulator considers a commodity rather than a security. A potential LTC ETF would likely drive demand and inflows into the Litecoin market.
At the time of writing, Litecoin (LTC) is trading at $122.19 – up 5.01% in the last 24 hours.
