Asset managers of Grayscale and Coinshares joined the race for the launch of the ETF Litecoin (LTC) Spot Fund, which caused the reactions of the cryptographic community, from enthusiasm to criticism.

Litecoin Spot ETF: The cryptocurrency community matters

January 24 Coinshares submitted the S-1 registration form with the American Commission of Securities and Stock Exchange (SEC) to launch Cinshares Litecoin ETF (“Trust”), a fund listed on the stock exchange, which offers investors exposure to LTC cryptocurrencies.

In the meantime, Grayscale also submitted a form 19b-4 in the authority supervision authority to put up and trade in Grayscain Trust to the stock exchange, suggesting a potential conversion to the ETF Spot Fund. In this way, both assets managers join the Canary Capital, trying to launch the first ETF Litecoin Spot fund.

This development caused a lot of euphoria in the cryptographic community, because the spot ETF generally promises a direct institutional reception, which can translate into a significant price escalate, which can be seen on the Bitcoin market. However, some market analysts attacked the idea of ​​creating the ETF Litecoin Spot fund, which in their opinion has a slight potential for success.

According to a well -known cryptocurrency expert, Ali Martinez, the Litecoin market seems largely unprepared for the spot ETF, taking into account that these assets have remained in the same price range over the last eight years. Martinez pokes Managers of assets to launch the ETF fund on USDT, which in the worst case would allow investors to achieve a rate of return on investment.

In another post on the X Cryptocurrency analyst with the username djthistle01 He also questions the idea of ​​creating an ETF LTC fund, especially since the value of this asset is constantly falling in relation to Bitcoin in the last 10 years.

However, other analysts say that Litecoin’s network activity compensates for the lack of extensive price actions. According to Entrepreneur TARUN TEMPAL, The number of LTC transactions has been growing since November 28. It is worth noting that on January 13-20, 2025, Litecoin converted transactions worth over $ 69 billion, which translates into an average of $ 10 billion a day.

Another LTC enthusiast is also called Aristotle Money highlighted Achieving the position of the most commonly used cryptocurrency for payment in 2024 according to Bitpay data, which indicates a great interest in the market.

Will the ETF like Litecoin type succeed?

In a fairly amazing way, the idea of ​​Litecoin Spot ETF caused a division among cryptocurrency enthusiasts and analysts. InterestinglyThis debate will probably be decided soon, because LTC is potentially another cryptographic asset that will provide a spot ETF before other Altcoins, including Solana and XRP.

This assumption is based on events such as Recent assembly of S1 amendment by Canary Capital, pointing to a constant dialogue between the managers and SEC. At the time of writing this text, the price of Litecoin was USD 123.91, after an escalate of 0.72% last day.