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- Charlie Lee, Litecoin’s co-founder, is quite optimistic about the crypto market since the green light was given by the SEC for a Litecoin ETF.
- Although Lee is sure that Litecoin ETF will be approved, he admits that the demand for it will be lower than the demand for Bitcoin ETs.
Charlie Lee, the founder of Litecoin (LTC), is bullish on the green light of the Litecoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). During a recent interview with Bitcoin Bros, Lee stressed that the SEC will approve a Litecoin ETF.
Litecoin creator @Satoshilite optimistic about the prospect of a #Litecoin Exchange-Traded Fund (ETF)https://t.co/ArgUzfunO8
— Litecoin (@litecoin) April 30, 2024
Comparing Litecoin with Bitcoin, Lee noted the similarities in their proof-of-work mechanisms and classified Litecoin as a commodity like Bitcoin. Since Bitcoin already has several spot ETFs that trade in the United States, for Lee, Litecoin has a great opportunity to share such an investment vehicle.
Lee’s Optimism and Structural Similarities
Although Lee is sure that Litecoin ETF will be approved, he admits that its demand will be lower than the demand for Bitcoin ETs. He also notes that Ethereum spot ETFs present different challenges, especially in light of Ethereum’s move from proof-of-work (PoW) to proof-of-stake (PoS).
In September 2022, Ethereum finalized its transition to PoS with the Merge upgrade. Lee argues that regulatory approval is a question of “when” and not “if,” highlighting his full confidence in Litecoin ETF. However, he expects increased interest in an Ethereum ETF if regulatory approval is granted, noting its wide utility and ecosystem as the main reasons.
Nevertheless, the recent court filings show that the SEC began probing the question of whether Ether could be considered a security in March of that year. Consensys sued the SEC about its regulation approach, which was thought to be too strict, as Ethereum development studio Consensys did. Also, the SEC delaying the clearances for Ethereum spot ETFs is a sign of possible hurdles, and some experts suggest May is the potential time for the rejection of these applications.
Ethereum Spot ETFs have uncertainties in the US, but the Hong Kong regulator has adopted a different approach. On April 30, Hong Kong institutions announced that spot Ethereum ETFs can be traded and to be traded at trading time. However, not as explosive as the Bitcoin ETFs in the US, the experts claim that the high performance on the first day is a sign of possible accelerated growth in the future. However, the regulatory barriers in the US and the approval and launch of Spot Ethereum ETF in Hong Kong signal the global demand for investment instruments in cryptocurrency.
Litecoin ETF on the Horizon? Founder Hints at Exciting Prospects
With Litecoin (LTC) being widely held, a significant portion of the community will shape the direction of the cryptocurrency as it strives to overcome major resistance. The recent classification shows that LTC investors are holding their bitcoins tightly, and the profitability of less than 5% of active addresses is insignificant now. This behavior is just a vivid reference to their willingness to sell at current low levels, which, in turn, may support LTC recovery.
Despite LTC’s price demonstration of resilience after it fell to a low in mid-April, its holders want more and do not capitulate. As of the time of this writing, LTC is currently trading at $75 with a 24-hour decline of 8%.
