Litecoin ETF Rumors Fuel 10% Surge As Institutions Hint At Interest
Rumors regarding a potential spot Litecoin (LTC) Exchange-Traded Fund (ETF) have sparked a significant price surge, with the digital asset gaining 10% amid speculation of institutional interest.
Fox Business journalist Eleanor Terrett, through a post on X (formerly Twitter), unveiled insights suggesting growing institutional intrigue towards a Litecoin ETF.
Terrett shared, “SCOOP: Hearing rumblings on the institutional level about possible interest in a Litecoin ETF.
The logic is that because of LTC functional similarities to BTC, the SEC may be more inclined to approve it, possibly even more so than ETH.” Why A Spot Litecoin ETF Could Be Possible This statement comes at a pivotal time as the crypto market continues to navigate through regulatory uncertainties and growing interest from traditional financial institutions.
Adding to the buzz, Terrett highlighted recent actions by the Coinbase Derivatives to launch futures contracts for Dogecoin, Litecoin, and Bitcoin Cash, all set to begin on April 1st, 2024.
Related Reading: Litecoin Beats Out Dogecoin, Bitcoin To Emerge As Top Crypto For Payments These futures contracts, as detailed, are part of Coinbase’s strategic move to diversify its offerings, leveraging the self-certification approach under CFTC Regulation 40.2(a).
This approach permits entities to launch new products without the explicit approval of the CFTC, provided they comply with the Commodity Exchange Act and accompanying regulations.
Moreover, the recent classification of Ethereum (ETH) and Litecoin (LTC) as commodities by the Commodity Futures Trading Commission (CFTC) in its lawsuit against KuCoin has added another layer of legitimacy to the discourse surrounding Litecoin’s regulatory standing.
The CFTC’s action emphasizes its view of certain cryptocurrencies as commodities.
Amidst these regulatory clarifications and developments, discussions about the potential approval of a spot Litecoin ETF have intensified.
Luke Martin, a renowned crypto analyst, echoed the sentiment, suggesting that the approval of an Ethereum ETF could pave the way for other “old altcoins,” like Litecoin, which may have a stronger case for not being classified as securities.
Related Reading: Litecoin Whale Deposits Big To Binance, LTC’s 3% Drop To Extend? He stated, “When the ETH ETF launches and passes, the question then becomes especially with the SEC’s track record versus tokens…