Litecoin Has Trouble Attracting Investors Even With Its Potential As An ETF. - CMN | Latest Cryptocurrency News Today

Litecoin experienced a 20% price decline, coming down to less than $70. It did, however, accomplish a 10% increase. A long time ago, Grayscale believed that if the SEC approved the conversion of CBTC, the company could modify its trusts into exchange-traded funds (ETFs). It would level the playing field for spot and futures ETFs if the SEC approved the Grayscale spot Bitcoin ETF.

Due to its potential, there are rumours that Litecoin might be included in the spot ETF. That was the CEO’s stance, and the business has since surmounted the obstacles the SEC put up in the way of its efforts to turn the Grayscale Bitcoin Trust (GBTC) into a spot ETF.

The CEO of Grayscale, Michael Sonnenshein, stated nearly two years ago that the approval for GBTC would allow the business to eventually move forward and convert its trusts into exchange-traded funds. It is anticipated that the Securities and Exchange Commission (SEC) will make a decision in the coming days on the conversion of GBTC into a spot ETF.

Between January 8, 2024, and January 10, 2024, more than a dozen applications could be approved, postponed, or rejected completely. This will significantly affect the state of the bitcoin market. It might also set a standard for similar products and make it easier for Grayscale to send their spot crypto ETF applications. Several top asset managers were ready to submit an application for a spot Ethereum ETF prior to the spot BTC ETF closing.

Since that Litecoin has remained one of the most balanced players, this, in the opinion of the Litecoin forecast, raises the possibility that it will experience a similar situation. Its legitimacy is further supported by the fact that Grayscale Litecoin Trust (LTCN) is an SEC-reporting organisation. However, because of the alternative cryptocurrency’s poor performance, it can face resistance from the market.

After the Matrixport FUD, Litecoin’s price dropped by just over 10%. Nevertheless, it didn’t seem that the problem will have a big effect on 2023. In recent years, LTC has not significantly increased in value, even though other prominent cryptocurrencies, such as Bitcoin, have increased by over 100%.

Because of this, institutional investors find it challenging to purchase LTC; instead, they favour alternative assets like Solana, Cardano, and Ripple (XRP). Institutions invested $3 million in LTC, according to the data received; SOL, ADA, and XRP received $167 million, $14 million, and $18 million, in that order.

But since the Litecoin community is dependent on forecasts, it is in the cryptocurrency‘s best interest to recoup 18% of its losses. Litecoin’s price has decreased by 10% to $66; it needs to reach $70 to break even. If this doesn’t happen, altcoin will drop to $58 and LTC will drop below $60.