Litecoin ETFs: The Next Spot Crypto ETFs in the USA?

The US financial regulator SEC is once again being pressured in the process of approving spot Bitcoin ETFs. Now the fund company Valkyrie has expanded its application for a spot Bitcoin ETF to include Litecoin. How realistic this project is remains to be seen. The US Securities and Exchange Commission (SEC) is facing increasing pressure to end its blocking attitude toward spot Bitcoin ETFs. Just over a week ago, the SEC lost a court case against Grayscale, which wants to convert its Bitcoin trust into a spot Bitcoin ETF. Now Valkyrie, another US fund company, is making headlines with a new proposal, after Grayscale won the legal battle against the SEC. Namely, Valkyrie has amended its application for a spot Bitcoin ETF with the SEC to the effect that not only Bitcoin, but also Litecoin is part of this ETF. This has been reported by Coindesk. Valkyrie’s idea: The planned ETF should not only map the Bitcoin price, but also that of Litecoin, in order to appeal to a broader investor base. Altcoins such as Litecoin are also becoming increasingly interesting for institutional investors. These have so far hardly found access to these cryptocurrencies through officially approved financial products. However, one should not view Valkyrie’s intentions with too much optimism. We recall that only in August, Valkyrie had hoped to win the race for the first US spot Bitcoin ETF altogether. This hope faded when BlackRock, with its vast experience, also submitted a corresponding application. The company BlackRock is regarded as a giant of the financial world and is accordingly expected to have greater chances of success than the relatively small fund company Valkyrie. The uncertain situation also affects the price of Litecoin itself, which did not see any lasting trend reversal even after the Grayscale judgment. LTC recorded temporary gains but has since slipped back below the USD 65 mark, for example. This situation exemplifies how only spot Bitcoin ETFs have profound significance for the market environment. Meanwhile, other altcoins like LTC are still untapped opportunities for institutional investors as far as the US regulatory perspective is concerned. Considering previous history, LTC remains largely outside the focus of major asset managers, and this is unlikely to change until a worldwide trusted spot ETF for Litecoin comes into play.