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Charlie Lee, the founder of Litecoin, has voiced enthusiasm regarding the surge in institutional interest surrounding the Litecoin ETF application submitted by Canary Capital. He highlighted that this application signifies a growing attraction to cryptocurrency from both institutional players and retail investors alike.
Lee underscored that the Litecoin ETF application is a clear reflection of the increasing demand for cryptocurrencies. The notable performance of Grayscale Litecoin Trust, which has experienced over 2% daily growth and trades at a premium over its net asset value (NAV), illustrates this heightened investor interest.
“Seeing Canary Capital’s Litecoin ETF application excites me. We are definitely seeing a lot of institutional demand for Litecoin, as clearly evidenced by Grayscale Litecoin Trust trading at a premium to NAV.” – Charlie Lee
Lee expressed optimism about the potential approval of the Litecoin ETF, citing its similarities to Bitcoin as a favorable factor. Analysts predict that if approved, Litecoin’s price might soar to $400 and could even exceed $1,100 by 2026.
The recent approvals by the SEC for Bitcoin and Ethereum ETFs have set expectations for other cryptocurrencies to follow suit. Litecoin’s established presence in European ETPs is expected to bolster these efforts.
The anticipation surrounding the ETF application has led to fluctuations in Litecoin’s value, which briefly reached $75.88 before retracting to $71.44. This volatility follows closely on the heels of the Ripple (XRP) ETF application, capturing the crypto community’s attention.
The interest generated by the Litecoin ETF application points to a pivotal role for institutional investors in the crypto market, potentially expanding investment options and elevating Litecoin’s market presence.