Litecoin value remained on edge in the course of the weekend, mirroring the efficiency of Bitcoin, which remained beneath $95,000.
Litecoin (LTC), a well-liked proof-of-work coin, was caught at $103.03, down by 30% from its highest stage in 2024. This decline aligns with most cryptocurrencies, which have pared again a few of the beneficial properties made final yr.
Litecoin’s efficiency was additionally due to the falling odds that the Securities and Trade Fee will approve a spot LTC ETF in 2025. In accordance with Polymarket, these odds have dropped to 42% from this yr’s excessive of 60%.
Eric Balchunas, a senior ETF analyst at Bloomberg, promoted the view that the SEC would approve a spot LTC ETF. In a December submit, he argued that the company would simply approve a Litecoin fund as a result of it’s a Bitcoin (BTC) exhausting fork.
Canary Capital is the one firm that has utilized for a spot Litecoin ETF. Grayscale may file to transform its Litecoin Belief, which has over $215 million in belongings, right into a spot ETF because it has accomplished with Bitcoin and Ethereum.
Whereas a spot Litecoin ETF could be factor for the coin, it’s unclear whether or not it’ll acquire curiosity from institutional traders. A superb instance of that is the efficiency of spot Bitcoin and Ethereum ETFs. Bitcoin funds have over $107 billion in belongings, 5.7% of the entire market cap. Ethereum funds have $11.6 billion, 2.96% of the market cap, indicating that institutional demand is weak.
Curiosity in Litecoin could be weaker than Ethereum since it’s a smaller crypto mission with a market cap of $7.7 billion. It has additionally misplaced market share within the crypto business as its rating has moved to 22 from being a prime ten coin a couple of years in the past.
Polymarket merchants are optimistic that the SEC will approve Solana (SOL) and Ripple (XRP) ETFs this yr. The company’s odds of approving a spot XRP ETF are 70%, whereas these of Solana ETFs are 73%. These funds might have an opportunity of success for the reason that two have a market cap of $144 billion and $67 billion, respectively.
