#LitecoinETF *

Key Challenges**

1. **Regulatory Hurdles:**

- The SEC requires **surveillance-sharing agreements** with regulated markets to prevent fraud. Litecoin's relatively smaller market cap (~$5 billion vs. Bitcoin's ~$1 trillion) and liquidity may make it harder to meet these requirements.

- Litecoin is not considered a security by the SEC, but its regulatory clarity still lags behind Bitcoin and Ethereum.

2. **Market Demand:**

- Litecoin is often overshadowed by Bitcoin and Ethereum in institutional interest. A Litecoin ETF might struggle to attract the same level of demand unless crypto diversification becomes a stronger theme.

3. **Competition:**

- If Bitcoin and Ethereum ETFs gain traction, Litecoin could be seen as a "second-tier" option, reducing urgency for regulators or issuers to prioritize it.