Litecoin ETF Approval Anticipated After Canary Capital Filing, Says Founder

• Litecoin ETF filing by Canary Capital is generating optimism in the crypto community.
• Founder Charlie Lee expresses confidence in quick approval due to growing institutional interest.
• Litecoin’s similarity to Bitcoin positions it well for ETF approval amidst market demand.

Charlie Lee, founder of Litecoin, recently expressed confidence in approving a Litecoin exchange-traded fund (ETF) following a filing by Canary Capital. Lee believes the ETF will soon be greenlit, reflecting the growing interest in cryptocurrency, especially among institutional investors.

Lee noted that the SEC’s approval of ETFs for Bitcoin and Ethereum paves the way for the potential acceptance of a Litecoin ETF. With the increasing institutional adoption of digital assets, Lee emphasized that the demand for Litecoin is rising.

He pointed to the Grayscale Litecoin Trust, currently trading at over twice its net asset value (NAV), as a sign of institutional solid interest.

The application by Canary Capital has already caused a stir in the market. Litecoin’s price saw a notable surge, hitting a monthly high of $75.88 before experiencing some volatility. At the time of writing, Litecoin was trading at $71.44, showing a weekly gain of 6%.

Lee also highlighted Litecoin’s transactional similarities to Bitcoin, which are considered commodities.

This shared characteristic strengthens the likelihood of approval for a single-asset Litecoin ETF, a significant milestone for the cryptocurrency. If approved, it would be the first such ETF in the world.

Bloomberg Intelligence analyst James Seyffart added that while Europe already lists several exchange-traded products (ETPs) holding Litecoin, the U.S. has yet to approve a standalone Litecoin ETF. Canary Capital’s application represents the first in the U.S. market.

The filing follows Canary Capital’s application for an XRP ETF, further signaling the growing interest in cryptocurrency ETFs.

With Litecoin’s increasing institutional and retail demand, the approval of this ETF could mark a significant step for investors and the broader digital asset market.