LTC Has ‘Far Higher Chances’ of Spot ETF Approval Than Ethereum, Major Asset Manager Begins Accumulating Litecoin
Cryptonium World made a bold statement saying that Litecoin (LTC), one of the earliest and most established cryptocurrencies, has “far higher chances” of being approved for a spot exchange-traded fund (ETF) than even Ethereum, the second-largest cryptocurrency by market capitalization.
A spot ETF is a type of investment product that tracks the price of an underlying asset, in this case, a cryptocurrency like Litecoin or Ethereum. It allows investors to gain exposure to the asset without directly owning it, making it an attractive option for those seeking to diversify their portfolios or gain exposure to the cryptocurrency market without the complexities of buying and storing the actual coins.
Cryptonium World cited several factors that could work in Litecoin’s favor for ETF approval. First, Litecoin was not launched through an initial coin offering (ICO), a controversial fundraising method that has sometimes drawn regulatory scrutiny. Second, it is one of the oldest cryptocurrencies, having been created in 2011, shortly after Bitcoin, which could lend it greater credibility and stability in the eyes of regulators.
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Show more +Furthermore, Litecoin has maintained a 100% uptime since its inception, showcasing its reliability and resilience. It also uses a decentralized proof-of-work (PoW) consensus mechanism, similar to Bitcoin, which is generally regarded as more secure and resistant to manipulation than other consensus mechanisms.
Cryptonium World drew a parallel between Litecoin’s potential and the meteoric rise of Dogecoin during the previous bull market, suggesting that Litecoin could experience a similar surge in value if approved for an ETF.
Adding to the intrigue, a Litecoin enthusiast known as The LTC Cowboy shared a personal “conspiracy theory” based on observations of market activity. According to The Cowboy, the leading digital asset management firm Grayscale appeared to be selling off its holdings of Bitcoin and Ethereum while accumulating Litecoin.
The Cowboy speculated that Grayscale might have coordinated with Bitcoin ETF providers to gradually sell off their Bitcoin holdings at a pace that matches the ETF’s buying, minimizing price fluctuations and drawing attention. This strategy, the theory suggests, would allow Grayscale and other entities to gobble up the remaining supply of Litecoin at relatively low prices, positioning themselves for potential gains if a Litecoin ETF is approved.
The Cowboy’s theory paints a picture of a coordinated effort by major players in the cryptocurrency industry to strategically accumulate Litecoin in anticipation of a potential ETF approval, which could drive significant demand and price appreciation for the cryptocurrency.
While these claims remain unverified and speculative, they have sparked discussions and debates within the cryptocurrency community about Litecoin’s prospects and the potential implications of a Litecoin ETF approval.
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