• 30 May, 2024
News

Litecoin Founder Charlie Lee Bullish on Potential SEC Approval of Litecoin ETF

In a recent interview, Charlie Lee, the founder of Litecoin (LTC), expressed optimism about the prospects of a Litecoin exchange-traded fund (ETF) receiving the green light from the US Securities and Exchange Commission (SEC). Lee emphasized his belief that the SEC will ultimately approve a Litecoin ETF, drawing parallels between Litecoin and Bitcoin’s proof-of-work mechanisms and categorizing Litecoin as a commodity akin to Bitcoin.

Lee highlighted the opportunity for Litecoin to follow in Bitcoin’s footsteps, as Bitcoin already boasts several spot ETFs trading in the United States. He anticipated that while demand for Litecoin ETFs may not match that of Bitcoin, there remains substantial potential for investment in Litecoin through such a vehicle.

Acknowledging the differences between Litecoin and Ethereum, particularly Ethereum’s transition from proof-of-work to proof-of-stake, Lee emphasized his confidence in the certainty of regulatory approval for Litecoin ETFs. He noted that Ethereum’s transition to PoS and its wide utility and ecosystem could also pave the way for increased interest in an Ethereum ETF if approved.

However, recent developments in the regulatory landscape have cast uncertainty over Ethereum ETFs in the US. Court filings revealed the SEC’s scrutiny of Ether’s classification as a security, with Ethereum development studio Consensys challenging the SEC’s regulatory approach. Delays in clearance for Ethereum spot ETFs signal potential obstacles, with experts suggesting possible rejections as early as May.

In contrast, Hong Kong has taken a different stance, with institutions announcing that they are approving and trading spot Ethereum ETFs. While not as explosive as their US counterparts, the performance of these ETFs on their first day of trading indicates potential growth prospects. This disparity in regulatory approaches underscores the global demand for cryptocurrency investment instruments.

Against this backdrop, Litecoin’s widespread adoption and community support are expected to be pivotal in shaping its trajectory. Despite recent price fluctuations, LTC investors have demonstrated resilience, with a significant portion holding onto their investments amid efforts to overcome major resistance levels.

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