Litecoin saw a drop of 20% in its pricing, lowering it to a level of less than $70. However, it managed to climb by 10%. It was a while back when Grayscale felt that it would be possible for the company to change its trusts in the form of ETFs, provided the SEC gave its consent to the CBTC transformation. In the case of the SEC consenting to the Grayscale spot Bitcoin ETF, it would turn out to be a leveler for spot and futures ETFs.
There are speculations that Litecoin may become a part of the spot ETF due to its ability. That was the CEO’s position, and the company has now overcome the roadblocks erected by the SEC when attempting to convert the Grayscale Bitcoin Trust (GBTC) into a spot ETF.
It was almost two years ago that Michael Sonnenshein, the CEO of Grayscale, mentioned that the consent for GBTC would open the doors for the company to take a step and transform its trusts into exchange-traded funds in the future. The Securities and Exchange Commission (SEC) is expected to reach a conclusion in the upcoming days regarding the GBTC being transformed into a spot ETF.
During the period from January 8 to January 10, 2024, it is conceivable that over twelve applications may be granted approval, deferred, or entirely declined. This will have a significant impact on the cryptocurrency market situation. Additionally, it could establish a precedent for comparable products and streamline the process for Grayscale to transmit their spot crypto ETF applications. Before the spot BTC ETF conclusion, some leading asset managers had prepared to apply for a spot Ethereum ETF.
This, according to the Litecoin forecast, increases the likelihood that Litecoin will encounter a similar circumstance, given that it has maintained its position as one of the most balanced participants. Furthermore, Grayscale Litecoin Trust (LTCN) is an SEC-reporting organization, which lends credence to its legitimacy. Nevertheless, it could encounter opposition in the shape of demand due to the subpar performance of the alternative cryptocurrency.
Following the Matrixport FUD, the price of Litecoin fell by little more than 10%. However, the issue did not appear to significantly impact 2023. LTC has had no significant gain in recent years, despite other major cryptocurrencies like Bitcoin increasing by more than 100%.
This makes it difficult to sell LTC to institutional investors who prefer other assets such as Solana, Cardano, and Ripple (XRP). According to data received, institutions invested $3 million in LTC, with SOL, ADA, and XRP receiving $167 million, $14 million, and $18 million, respectively.
However, the Litecoin community relies on projections, making it advantageous for cryptocurrency to recover 18% of its losses. The price of Litecoin has dropped by 10% to $66 and must hit $70 in order to break even. If this does not occur, LTC will fall below $60, with altcoin falling to $58.