Bitwise has launched its first exchange traded product tracking Lighter's LIT token on Deutsche Börse Xetra, giving European investors access to the asset through conventional brokerage accounts. According to Bitwise, the Bitwise Lighter Staking ETP (BLIT) began trading under the ticker BLIT on September 23 and tracks the Kaiko Lighter Reference Rate. The product carries an annual total expense ratio of 0.85% and is issued by Bitwise Europe GmbH in Germany. As reported by Bitwise, the ETP is physically backed by LIT held in cold storage, meaning the product holds the underlying cryptocurrency instead of providing synthetic exposure to its price.
According to Bitwise data, BLIT held approximately $4.74 million in assets backed by 1.01 million LIT at launch, making its current holdings small compared with LIT's overall market value. As reported by CoinGecko, LIT's market capitalization stood at roughly $1.27 billion on September 23, while trading volume reached near $84.7 million. The ETP structure allows investors to gain exposure to LIT using a regular brokerage account without directly holding the cryptocurrency or managing private keys and wallets. However, staking has not yet begun and will only start once BLIT reaches sufficient assets under management, with Bitwise yet to disclose the required threshold.
LIT experienced a dramatic reversal after initially rallying toward $5.50 following Bitwise's ETP launch, but sellers quickly rejected the price near that level. The token fell as low as $4.86 and was trading near $4.87 at press time, representing an 11.2% decline in 24 hours. According to AMBCrypto, LIT lost the critical $5 support level and posted two consecutive red daily candles. The token also fell below its nine-day Moving Average while MACD formed a bearish crossover and dropped to 0.35, indicating weakening momentum after the initial rally. The price decline occurred despite the ETP launch, suggesting that profit-taking dominated market sentiment after LIT's gains of more than 60% over the past month.
Despite the ETP launch, Lighter's staking mechanism remains inactive as the product has not yet begun staking operations. According to Learning Pill analysis, 46% of circulating LIT is currently staked and more than 6% has been repurchased by the platform. However, the Bitwise ETP's potential to absorb token supply through staking remains a future possibility, as the product requires sufficient assets under management before staking can commence. This creates a supply dynamic where staking demand may eventually offset selling pressure, though the immediate impact of the ETP launch has been limited by the requirement for sufficient assets under management.
LIT faces critical technical levels that could determine its near-term direction. If selling pressure persists, the token could test its 21-day Moving Average near $4.60, with a potential breakdown bringing $4 into focus over the following weeks. By contrast, easing profit-taking could help the altcoin reclaim $5 and challenge $5.40, requiring buyers to regain ground lost after the ETP launch. The current price action reflects the complex dynamics between new distribution channels and existing supply dynamics, with exchange netflow remaining positive for four consecutive days suggesting tokens were moving toward exchanges, raising the possibility of continued selling pressure.
