Analysis: Litecoin ETF could attract up to $580 million in capital inflow
According to an analysis by CoinDesk, if the market acceptance of a Litecoin ETF is similar to that of a Bitcoin ETF, its first-year inflows could reach between $290 million and $580 million, accounting for about 6% of LTC's market value ($9.6 billion). This ratio is comparable to the supply currently locked in Bitcoin ETFs.
Canary Capital is actively promoting the LTC ETF and its submitted 19b-4 file has entered SEC review process. Analysts believe that LTC's proof-of-work mechanism similar to Bitcoin may increase its chances of being considered as a commodity. Although the fund size of the LTC ETF may not be as large as those for Bitcoin or Ethereum ETFs, it is expected to outperform most US-based ETFs (only 1,330 manage assets over $300 million).
The analysis pointed out that while market demand remains a key variable, even with relatively low demand, an LTC ETF could still achieve success in the crypto field.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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