This $9 Billion Altcoin Could See Its ETF in 2025

Introduction

Crypto ETFs have taken the financial world by storm, opening up the doors for traditional investors to dip into digital assets without facing the complexities of wallets or exchanges. These ETFs have made it simpler than ever to get exposure to the growth of blockchain and cryptocurrency technologies—and 2024 proved their staying power in a big way.

While Bitcoin and Ethereum ETFs have been stealing the show, the spotlight could soon turn to Litecoin (LTC). Worth over $9 billion, Litecoin has been quietly building its reputation as the reliable "silver to Bitcoin’s gold," and now, it’s potentially getting an ETF of its own. Yes, that’s right—a Litecoin ETF could be on the table as early as 2025, thanks to a recent filing by Canary Capital.

A Quick Refresher: What Crypto ETFs Can Do

Before we explore the potential Litecoin ETF, let’s take a moment to review the recent performance of crypto ETFs overall. When Bitcoin got its first futures ETF in 2021, over $1 billion was poured in within two days. When spot Bitcoin ETFs finally arrived in 2024, they unlocked a $60 billion market almost overnight.

• Ethereum spot ETFs followed suit, gathering nearly $8 billion in AUM this year. Their launch boosted Ether's adoption as a "stake-and-hold" asset, aligning with Ethereum’s growing ecosystem. 
• Moreover, future-based ETFs for coins like Solana and Chainlink have also shown there’s an appetite for diversification within the ETF market. Solana futures ETFs collectively pulled in millions during their launch period in Q4 2024.

Bitcoin ETF Market Size (as of Oct 2024), Source: Galaxy 

Why the Hype Over a Litecoin ETF?

Litecoin is no newcomer to the crypto scene—it’s been around since 2011, earning a solid reputation as a lightweight yet secure transactional cryptocurrency. It handles over 77 million transactions annually and is increasingly being adopted by payment platforms like BitPay and PayPal.

The push for a Litecoin ETF stems from its technical similarities to Bitcoin: both are proof-of-work cryptocurrencies with capped supplies, but Litecoin offers faster transaction speeds and lower fees. With top firms at the helm of this proposed ETF, investors could soon bypass wallet setups, private key management, and the quirks of crypto exchanges by simply buying Litecoin-backed shares.

What’s the Timeline?

The timing for this filing couldn’t be better. The U.S. SEC has recently shown more openness to crypto ETFs, giving the green light to Bitcoin and Ethereum products. Litecoin, with its solid ecosystem and growing institutional interest, seems ready to ride this wave of approval. Even Charlie Lee, Litecoin’s founder, sounds optimistic—he’s hinted that we could see the ETF hit the market by 2025, assuming things go smoothly with regulators.

But, of course, nothing in crypto comes without challenges. Regulatory delays or shifting SEC priorities could impact the timeline. That said, there’s a growing sense that Litecoin’s entry into the ETF space is more when than if.

Why Does This Matter for Litecoin?

Here’s where things get exciting. Litecoin is a real “OG” in the crypto space, but over time, it’s kind of been overshadowed by newer blockchains like Solana, SUI, and others. That said, if the ETF does come through next year, it could really shake things up. 

Historically, ETFs tend to boost crypto adoption and demand. For Litecoin, this could translate into wider acceptance and potentially a price surge. Analysts are buzzing about LTC possibly hitting $400—or even higher—if the ETF gains traction, especially since the current price is hovering around $100.

BTC price correlation with increasing ETF inflows, Source: BlockScholes

Adding to the momentum, Grayscale’s Litecoin Trust has been growing, already trading at more than double its net asset value (NAV), showcasing the strong institutional demand.

A New Era for Litecoin?

Litecoin isn’t flashy, it’s dependable. It’s been chugging along quietly since 2011, providing faster transactions and lower fees than its “golden” counterpart, Bitcoin. But a potential ETF changes the game entirely. Institutional money, wider adoption, and a scarcity-driven supply could make LTC an underdog poised for a massive leap.

Whether you’re already a Litecoin-er or simply curious about its future, the next year could be pivotal. 2025 is shaping up to be a big year for cryptocurrencies in general, and this $9 billion altcoin could soon have its moment in the ETF spotlight.