Key Insights:
Top ETF analyst James Seyyfart believes Litecoin ETFs to be approved much faster than XRP.
According to the SEC, Litecoin is not a security and receives the same regulatory treatment as Bitcoin, on which it is based.
At present, only two Litecoin ETF applications exist in the market: Canary Capital and Coinshares.
Coinshares had applied for a Litecoin ETF via Nasdaq.
Even with a hint of approval, Litecoin is expected to rally 100% from current levels.
Technically, the SEC sees cryptocurrencies as securities and non-securities. Even though the current administration and new SEC Chief are expected to be lenient, a Litecoin ETF has a chance of faster approval.
Currently, only two Litecoin ETFs exist in the market, from Canary and Coinshares. The SEC has already acknowledged their 19b-4 applications, which means that an approval could be around this month.
Bloomberg ETF analyst James Seyyfart concludes that a Litecoin ETF has much faster approval chances because the SEC does not see Litecoin as a security. Instead, it classifies it along the same lines as Bitcoin.
Based on the same logic, the Bloomberg ETF approval charts indicate that Litecoin ETFs have a 90% chance of approval, i.e., 15% higher than Dogecoin, 20% higher than Solana ETFs, and 25% higher than XRP ETFs.
Eric Balchunas and James Seyyfart are renowned experts and have accurately identified several trends in the markets, much before everyone.
This week, Coinshares applied for its Litecoin ETF via Nasdaq (acting as the applicant). After the S-1 filings, Coinshares approached Nasdaq with assistance in filing 19b-4 applications.
The SEC application number 19b-4 manages all the self-regulatory entities like exchanges and the security listings done on these entities. It is through this form that exchanges report their regulatory actions on the listed securities. Since
Coinshares had previously applied for XRP ETFs in the USA. It also operates the sole approved Solana ETF in the United Kingdom.
Layer-1 blockchains like Bitcoin, XRP, Litecoin, and Dogecoin remain the top choice for ETFs because they are simple to use, are highly risk-free, and do not require much knowledge to develop.
Hence, these blockchains find a high degree of usage in areas like banking, which is the largest corporate industry in the world. Proof of Work blockchains like Litecoin can easily help banks transfer millions among themselves at a fraction of the cost of SWIFT. This feature alone pushed Ripple's XRPL ahead of all other blockchains for RWA, inter-bank transfers, cross-border settlements, and many more applications.
Since Litecoin is also derived from the same architecture as Ripple, i.e., Bitcoin, we may see Litecoin getting a similar demand soon.
Another benefit of Layer-1 ETFs is that they do not depend on any other technology and can exist independently. This is not the case for other ETFs like Memecoin ETFs. In the case of memecoins, except Dogecoin and Shiba Inu, all others depend on Solana or Base blockchains to function. As a result, Layer-1 ETFs have a much lower risk of emerging from secondary sources.
Litecoin Rallies 11% on ETF News
CoinMarketCap
As soon as the Litecoin ETF news emerged, crypto markets saw an 11% rally in LTC. ETFs bring huge money inflows into the crypto which alleviates its price by a huge factor. As a result, it generates FOMO, which triggers further buying in it.
Today, Litecoin has touched a high of $129, just below its long-term resistance of $133, which was last touched about two years ago on 28 March 2022. Once Litecoin crosses this mark, we could see accelerated growth towards its next resistance, i.e., $265, a whopping 100% rally from current levels.
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