Litecoin Price Remains Volatile Amid Declining Odds of Spot ETF Approval

Litecoin’s price remained on edge over the weekend, closely mirroring the performance of Bitcoin, which struggled to break above $95,000. The popular proof-of-work coin, Litecoin, was stuck at $103.03, down by 30% from its highest level in 2024.

Market Performance and ETF Approval Odds

This decline aligns with the overall market trend, as most cryptocurrencies have pared back some of the gains made last year. Litecoin’s performance was also influenced by the falling odds of the Securities and Exchange Commission (SEC) approving a spot LTC ETF in 2025. According to market data, these odds have dropped to 42% from this year’s high of 60%.

Despite this, some analysts remain optimistic about the approval of a spot LTC ETF. Eric Balchunas, a senior ETF analyst at Bloomberg, argued that the SEC would easily approve a Litecoin fund because it is a Bitcoin hard fork.

We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending…

Potential Impact of a Spot Litecoin ETF

While a spot Litecoin ETF would be a positive development for the coin, it is unclear whether it will gain significant interest from institutional investors. A spot Litecoin ETF would need to compete with other established cryptocurrency ETFs, such as those tracking Bitcoin and Ethereum.

For example, Bitcoin funds have over $107 billion in assets, representing 5.7% of the total market cap. Ethereum funds have $11.6 billion, indicating a market cap of 2.96%. This suggests that institutional demand for cryptocurrency ETFs is relatively weak.

As a smaller crypto project with a market cap of $7.7 billion, Litecoin may struggle to attract significant institutional investment. The coin has also lost market share in the crypto industry, with its ranking moving to 22 from being a top ten coin a few years ago.

Comparison with Other Cryptocurrency ETFs

In contrast, Polymarket traders are optimistic about the approval of Solana and Ripple (XRP) ETFs this year. The agency’s odds of approving a spot XRP ETF are 70%, while those of Solana ETFs are 73%. These funds may have a chance of success due to the larger market caps of Solana and Ripple, which are $144 billion and $67 billion, respectively.

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