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Litecoin Founder Charlie Lee Expects ETF Approval, Doubts Ethereum’s Chances
- Litecoin founder Charlie Lee sees potential for an LTC ETF, stressing demand over regulatory hurdles.
- He said that despite some institutional interest this is still lagging behind Bitcoin and Ethereum.
- Lee believes while an ETH ETF is in greater demand it has more regulatory hurdles to overcome.
The US has had almost four months of Spot Bitcoin ETF trading, Hong Kong has just commenced trading of BTC and Ethereum funds and Australia is expected to list several Bitcoin funds on the ASX by the end of 2024.
Related: Whales Spotted: $75 Million in Ethereum Transferred to Coinbase Institutional from Unknown Wallet
So, amid all this flurry of ETF activity, what’s next?
While many in the industry don’t give an Ethereum ETF approval in the United States much of a chance – amid regulatory issues – the focus for some in the community now is on other altcoin ETFs.
The social media account of Litecoin, just fuelled those speculations when reporting that the LTC founder holds positive views of such an ETF for Litecoin.
Lee said it’s all about the demand and if there is an interest by people for a LTC ETF. Regarding the regulatory approval however Lee expects no issues.
Litecoin is so similar to Bitcoin in how it works and how decentralised it is, and how it is a commodity. I don’t see it not being approved, it’s more about demand.
Charlie Lee, Litecoin Founder He added institutional demand may be less than that for Bitcoin and Ethereum ETFs.
Lee: Ethereum May Not Be the ‘Second One’
While Lee believes the demand for a Spot Ethereum ETF is high, he is not so sure if approval is so clear-cut.
Ethereum’s path to an ETF is much harder than Bitcoin’s path to an ETF. There are still calls for Ethereum being a security. We’ll see what the SEC says.
Charlie Lee, Litecoin Founder Gary Gensler, the chair of the US Securities and Exchange Commission (SEC), has for a long time now refused to say whether he believes Ethereum is a commodity or a security, much to the frustration of the crypto industry. For comparison, Rostin Behnam, the chair of the Commodity Futures Trading Commission (CFTC), has made clear that his agency’s stance on Ethereum is that it is a commodity.
The proof-of-work (PoW) mechanisms of Bitcoin and Litecoin are often cited as an important factor for decentralisation and whether something is a security or commodity. Ethereum made its change from PoW to proof-of-staking in September 2022.
JPMorgan claims that move made it more centralised. Experts have long been of the opinion applications for Ether ETFs will not be approved in 2024.
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BlackRock CEO Larry Fink said in an interview he believes that ETH being a security doesn’t bar it from being traded in an ETF, adding that many securities (think shares of companies) are bundled in ETFs.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
