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Recently, discussions about altcoin ETFs have not diminished in intensity. Although the difficulty of approval remains significant, the scale and stability are undoubtedly key factors. If successful, the trends of these alts will undergo tremendous changes.
The currently applied alts include DOGE, LTC, XRP, SOL, and DOT. In terms of success rates, LTC, SOL, and DOGE have a higher chance, while DOT is likely to lag behind, and XRP faces difficulties due to centralization issues.
**SOL**: Known as "the ETH of the US", it has a market capitalization of 71.1 billion, supported by strong American capital, and has the highest number of application institutions, making the probability of ETF approval very high. However, in the short term, SOL may still be viewed as a tool for FTX's recovery.
**DOGE**: With a market capitalization of 29.2 billion, it is based on POW consensus and has a large fan base, especially with the support of Musk. Although the ETF progress is slightly slow, its potential should not be underestimated.
**LTC**: Market cap of 7.1 billion, with a long history and high degree of decentralization, also based on POW, meets SEC standards. Although liquidity is slightly lower, it is the first altcoin ETF officially accepted by the SEC. On March 21, the SEC confirmed that POW mining does not count as securities, which adds a lot of hope for LTC's ETF application.
In the past few years, the market performance of Litecoin has indeed been somewhat lackluster, even making people feel "exhausted". However, it may have ushered in an opportunity to change its fate — the ETF application. Compared to other alts, LTC has a relatively high degree of decentralization and meets SEC regulatory requirements. Based on the current progress, it is the first altcoin ETF application officially accepted by the SEC, and the recent statements from the SEC regarding POW mining have significantly increased the likelihood of approval. It is expected that the competition for this ETF will yield results as early as the second quarter and at the latest in the second half of the year.
From the market performance perspective, Litecoin has performed relatively poorly in the last two bull markets, with its market capitalization ranking declining. However, during risk periods, it has shown good resilience, especially during the ETF application period, where there are not many trapped positions, making it a stable choice for seeking gains.
If Bitcoin experiences a pullback later, the decline of Litecoin may be limited, and the rebound speed will also be faster. In the short term, its risk is even lower than ETH, making it suitable for long-term dollar-cost averaging or short-term hedging. If the ETF can be successfully approved, the market's perception of Litecoin will undergo a turnaround, and buying LTC on dips is undoubtedly a good investment strategy.
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