Asset managers Grayscale and Coinshares have joined the race to launch a Litecoin (LTC) Spot ETF drawing reactions from the crypto community starting from excitement to criticism.

Litecoin Spot ETF: Crypto Community Weighs In

On January 24, Coinshares filed an S-1 registration form with the US Securities and Exchange Commission (SEC) to launch the COINSHARES LITECOIN ETF (the “Trust”),  a spot exchange-traded fund that gives investors exposure to cryptocurrency LTC.

Meanwhile, Grayscale also filed a 19b-4 form with the securities regulator to list and trade its Grayscale Litecoin Trust, suggesting potential conversion to a Spot ETF.  In doing so, each asset managers join Canary Capital in a bid to launch the primary Litecoin Spot ETF. 

This development has spurred much euphoria within the crypto community as a spot ETF generally guarantees direct institutional adoption which might translate into significant price growth as seen within the Bitcoin market. Nevertheless, certain market analysts have attacked the thought of Litecoin Spot ETF which they imagine shows little potential for achievement. 

In line with renowned crypto expert, Ali Martinez, the Litecoin market appears largely unready for a spot ETF considering the asset has maintained the identical price range over the past eight years. Martinez nudges asset managers to reasonably launch a USDT ETF which might allow investors to earn a staking yield at worst. 

In one other X post, crypto analyst with username djThistle01 also questions the thought of a LTC ETF especially because the asset has consistently declined against Bitcoin over the past 10 years. 

Nevertheless, other analysts argue that Litecoin’s network activity makes up for its lack of in depth price motion. In line with entrepreneur Tarun Tejpal, the LTC transaction count has been on the rise since November 28. Notably, between 13-20 January 2025, Litecoin has processed over $69 billion in transactions translating into a median of $10 billion per day.

One other LTC enthusiast named Aristotle’s Money also highlighted the asset’s achievement as probably the most used cryptocurrency for payment in 2024 in line with data from BitPay, demonstrating significant market interest.

Will A Litecoin Spot ETF Be Successful?

In a reasonably uncanny fashion, the thought of Litecoin Spot ETF has drawn a division amongst crypto enthusiasts and analysts. Interestingly, this debate is prone to soon be settled as LTC is potentially the subsequent crypto asset to secure a spot ETF ahead of other altcoins including Solana and XRP.

This assumption relies on developments comparable to the recent submission of an S1-amendment by Canary Capital indicating an ongoing dialogue between the asset manager and the SEC. On the time of writing, Litecoin trades at $123.91 following a 0.72% gain previously day.