Daily Litecoin News Update
While the crypto market corrects, it may be reassuring for LTC HODLers to know that Litecoin is securing further acceptance in the investment world. In the past 24 hours, we’ve had two institutions launch new investment instruments for investors. Both of these include Litecoin.
First up is the first-of-its-kind Litecoin Investment Trust, something similar to the Bitcoin Investment Trust (OTCMKTS:GBTC) launched three years ago.
The crypto world’s largest investment fund, Grayscale Investments, LLC, is launching four new investment trusts after the success of its Bitcoin focused-trust. Litecoin is one of them. (Source: “Grayscale Investments Announces Launch of Bitcoin Cash Investment Trust, Ethereum Investment Trust, Litecoin Investment Trust and XRP Investment Trust,” PR Newswire, March 6, 2018.)
The trust, by itself, may not affect the Litecoin price. It does, however, afford Litecoin special distinction among the more-than-1,500 cryptocurrencies out there.
The Litecoin investment fund will be similar to a stock mutual fund, except the fund would only hold one asset: Litecoin. Buying a share in the fund would allow average investors to gain exposure to Litecoin without actually holding Litecoin. In other words, the fund would make it easy for the average Joes to indirectly invest in Litecoin.
Let’s be fair. From the outside, crypto investing still looks like an onerous process; picking a trustable exchange, downloading a secure wallet, saving passkeys, and then buying hardware wallets. For non-tech savvy investors, the Litecoin trust offers a great opportunity to become part of the growing crypto community without much of a hassle.
For Litecoin, a trust like this one offers a chance to add new investors—that is, potential buyers who may eventually want to move in to buy Litecoin directly.
The same day as Grayscale announced the investment fund, America’s largest cryptocurrency exchange, Coinbase, announced it will launch an index fund. The CB index fund is being hailed as the “Dow Jones” of cryptos and will include only four cryptos weighted by their market caps. Again, one of these four is Litecoin.
Chart courtesy of TradingView.com
Litecoin’s addition to these funds has a symbolic significance. It makes Litecoin one of the most reputable cryptos in the space. Why else would these funds include Litecoin if they didn’t see a long-term potential in it? Only a handful of cryptocurrencies enjoy this level of eminence.
On numerous occasions before, I’ve called Litecoin an “elite coin” for the very reason that it is counted with the likes of Bitcoin and Ethereum—the two heavyweights cited as the trendsetters in the crypto industry.
Litecoin’s growing dominance in the crypto space buoys our Litecoin price prediction for 2018, which sets the LTC price target at $400.00.