Litecoin, the world’s ninth-largest cryptocurrency by market cap, will quickly see an institutional itemizing within the type of an exchange-traded product (ETP) in Switzerland, as per a press release by crypto funding agency CoinShares right now.
The agency’s funding merchandise present publicity to Bitcoin (BTC) and Ethereum (ETH), and a Litecoin (LTC) product would now be accessible to eligible institutional and particular person buyers all through Europe.
The main points
Known as the ‘CoinShares Bodily Litecoin,’ the product is without doubt one of the first-ever Litecoin-based funding merchandise to be launched on a regulated alternate in Europe.
It will be listed on the regulated SIX Swiss Change beneath ticker ‘LITE.’ Every unit of LITE is backed with 0.20 LTC ($46.95) at launch, offering buyers with passive publicity to the Litecoin community’s native asset.
BREAKING: CoinShares launches physically-backed #Litecoin ETP
— Market Meditations (@MrktMeditations) April 6, 2021
For the uninitiated, ETPs are institutional merchandise that symbolize an underlying asset and are traded on the open market just like equities and bonds.
Such merchandise are, at the moment, one of many solely methods for conventional buyers to realize publicity to cryptocurrencies—in contrast to shopping for spot property on an unregulated, unreliable crypto alternate.
And whereas Bitcoin and Ethereum have already got comparable ETPs within the European market, there are just a few Litecoin-focused ones. However that quantity is steadily rising.
“LITE comes sizzling on the heels of our Bitcoin and Ethereum product launches in 2021 and can profit from the identical strong and clear physically-backed product construction,” mentioned CoinShares head of product Townsend Lansing in a press release.
Why a Litecoin ETP?
Litecoin has, for lengthy, been termed because the ‘digital silver’ various to Bitcoin (the ‘digital gold’). It was launched in October 2011—as one of many earliest Bitcoin forks—by ex-Google engineer Charlie Lee and has since grown to change into one of many greatest cryptocurrencies.
A few of its varied benefits over Bitcoin are faster transaction occasions, decrease charges, and quicker block occasions (of two.5 minutes). Newer and higher privateness options are quickly coming within the ‘Mimblewimble’ improve—giving the cryptocurrency a powerful push on the basic aspect.
#MWEB is about to be the most important improve to the Litecoin community ever, promising to supply fungibility for all, whereas bettering LTC’s scalability. Litecoin is positioning itself for the long run. #Faster #Better #Stronger #SundayThoughts#LitecoinFACT #Litecoin $LTC
— Litecoin Basis (@LTCFoundation) March 28, 2021
“As demand for digital property amongst the normal funding group steadily will increase, we’re beginning to see the inexperienced shoots of demand for funding exposures outdoors of the highest two dominant networks,” shared CoinShares chief income officer Frank Spiteri.
In the meantime, the launch brings CoinShares’ funding merchandise to seven. The agency has over $4 billion of property beneath administration on its platform, of which roughly two-thirds is in Bitcoin publicity and a small, however rising, share in Ethereum. However might Litecoin change that?
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