Litecoin ETF Approval Prospects High According to Seyffart, Estimated Odds Reach 90%
At the Litecoin Summit 2025 in Las Vegas, the topic of Litecoin's future in exchange-traded funds (ETFs) was the highlight of a panel discussion. James Seyffart, a research analyst at Bloomberg Intelligence, moderated the session, which included renowned crypto finance experts like Steven McClurg, CIO of Valkyrie Investments.
The consensus among the panelists was one of cautious optimism, with a definitive lean towards optimism regarding Litecoin ETFs. Seyffart asserted, "Our view is it's going to be approved. It's a matter of when, not if." This confident outlook stems from his projection of a 90% likelihood of Litecoin ETF approval in 2025, attributed to Litecoin's regulatory compliance, given its history and dependability.
Though the Securities and Exchange Commission (SEC) has been hesitant in approving crypto ETFs, Seyffart suggested a warming trend, albeit slower progress than desired by the industry. He mentioned tentative plans for an October approval for a Litecoin ETF, acknowledging a slim chance of an early approval in July, however unlikely.
The discourse expanded to encompass broader ETF areas, with Seyffart noting a surge in ETF filings, totalling over 80 applications as of the event. Despite the deluge of proposals, Seyffart remained optimistic about Litecoin's potential, stating, "Where I do think the line isn't going to be stopping Litecoin."
Hashdex's Bruno Caratori called Litecoin "the non-controversial part of this framework," attributing its favorable reputation among regulators and investors to its relative cleanliness compared to other cryptocurrencies.
Steven McClurg, who has been integral to the ETF filing process, highlighted that Valkyrie was the first to file for a Litecoin ETF in the US. He pointed to the re-involvement of Charlie in the Litecoin Foundation as a significant factor for this move, as well as Gensler's comment that Bitcoin, Ethereum, and Litecoin are not securities, which bolstered their confidence early on. However, despite promising signs, the approval process has been delayed, primarily due to internal delays at the SEC. McClurg stood firm in his belief that, "Outside of that framework being published, I've got no doubt that Litecoin will be the next ETF to launch."
In terms of market demand, McClurg anticipates a strong demand for Litecoin, attributing it to its extensive exposure over the years and cost-effective retail-friendly price point. He suggested that investors, perceiving Litecoin as a cheaper alternative to Bitcoin, might find it attractive. The choice of Litecoin over other cryptocurrencies for an ETF could potentially divert some demand towards the cryptocurrency, creating a bullish outlook for the digital asset.
- James Seyffart implied that Litecoin's ETF approval is imminent, suggesting a potential October approval due to its regulatory compliance.
- Bruno Caratori view Litecoin as the "non-controversial part of this framework," crediting its reputation among regulators and investors to its relative cleanliness compared to other cryptocurrencies.
- Steven McClurg believes that outside of internal delays at the SEC, Litecoin will be the next cryptocurrency to launch an Exchange-Traded Fund (ETF), citing its extensive market exposure and cost-effective retail-friendly price point as factors driving investor demand.
