Litecoin (LTC) is one of the cryptocurrencies with more chances of having its own quoted background (ETF) before the end of 2025.
This has been pointed out by Eric Balchunas and James Seyffart, analysts of Bloomberg Intelligence, who argue that There is a 95% chance that Litecoin is the next digital asset in having an ETF.
While the launch of this financial instrument generates some euphoria among the followers of LTC, some analysts put cold cloths to the issue and warn that the impact on the price of the asset could be limited.
One of those who relativizes enthusiasm is Mike Fay, cryptocurrency market analyst, who Consider that “the ETFs of Litecoin could not matter.” According to him, the key question is not whether there will be an ETF, but “if the market really cares that one is approved.”
Before continuing with his thesis, it is worth clarifying that the possibility that LTC has an ETF I could open the doors to greater interest on the part of institutional investorsin addition to attracting liquidity to its ecosystem.
As cryptootics explained, ETFs allow exposure to the asset without acquiring it directly, which helps overcome barriers such as technical complexity or regulatory doubts that usually limit institutional participation.
However, for Fay it has been demonstrated in 2025 that “the greatest promoter of ‘adoption’ in the digital asset ecosystem are capital flows through investment products instead of any real utility offered by the native assets of the chain”.
From their perspective, this leaves projects such as LTC, which do not have a differentiated value proposal or a narrative that capture market interest. For example, the case of Bitcoin (BTC), which has been consolidated as a reserve asset.
For that reason, Fay suggests that LTC could be relegated, even with an approved ETF.
To sustain this idea, the analyst puts the focus on the performance of financial products linked to digital assets such as BTC and Ethher (ETH), the native cryptocurrency of Ethereum, which have concentrated much of the market interest.
In the following graph, the monthly net flows (MTD) can be observed, the accumulated entries for the year (YTD) and the total assets under management (AUM) of these products.
As observed, In the case of LTC, monthly fund flows decreased by 1.2 million dollarsand so far this year they have only accumulated 4 million dollars. In total, these investment products accumulate 247 million dollars.
“Total investment assets under the administration of Litecoin are actually lower than the monthly flows of Solana (Sol), which already obtained an ETF al told in the US market this year. This does not give much confidence that there will be a real demand for LTC, even if the ETFs of LTC reach the US market at the end of this year,” Fay stresses.
It should be clarified that the Litecoin network is in use, and a sample of this is the amount of Active addresseswhich exceeds 8.6 million, and total transactions, which is around 399 million. However, the analyst warns that “the cryptocurrency market does not always reward the utility.” In addition, he adds: “Unlike Solana or Ethereum, there is no stablecoin angle that can boost LTC higher.”
This is in reference to the recent approval of the Orientation and Establishment of National Innovation for Stablecoins, known as Genius. It is a standard that establishes a regulatory framework to include Stablcoins in the traditional financial system of the United States.
After the approval of the law, exponential growth is expected in the volume of stablcoins. Since almost 50% of that volume circulates in the Ethereum network, the ecosystem is emerging as the main beneficiary if the emission of stable currencies accelerates under the new regulatory framework.
In the case of Solana, although it currently only concentrates about 4% of the volume of stablcoins, it could be benefited if it manages to capture a part of the projected growth. Even a small portion of that additional flow would have a significant impact on its ecosystem.
In spite of the impulse represented by the genius law, Fay insists with his thesis: “What is more important, narratives and fundamentals only matter if the market cares. And at this time, the market is showing very little interest in LTC investment products.”
