The MCU has been particularly lazy in regards to its representation of LGBTQ+ characters. The comic book universe has dozens of characters to draw from in this regard, but the movies largely ignore this. One of the worst cases of LGBTQ+ erasure in the MCU is the case of Loki.
In the comic books, Loki is confirmed to be gender fluid. The female form of the character isn't “Lady Loki" as fans refer to them, they're just Loki. The trickster god’s penchant for switching forms isn't just a power, it's a part of them, and they switch depending on how they feel. Finally, the MCU is at least trying to honour this.
Disney confirms Loki is gender fluid
With the upcoming Loki TV show releasing in a couple of days, Disney has started releasing promotional footage. In one video, fans noticed a case file for the trickster god that reveals some intriguing details.
For starters, the character weighs exactly the same as their comic book incarnation: 525 pounds. Secondly, the case file confirms that the MCU version of this character is indeed gender fluid. Under the sex portion of the case file, it reads “Fluid".
In the MCU so far, the character has only been portrayed as male presenting. As such, the character has been portrayed by Tom Hiddelston. In the future, the female presenting version of the character could make an on-screen appearance. In fact, the character could appear in the upcoming TV show.
Loki as a character isn't ever tied to one form. They can be male, female or gender neutral. In some cases, the character doesn't even present themselves as a humanoid at all. Anything is possible with the character.
Further representation in the MCU
The MCU is set to include more LGBTQ+ characters for the future of the film franchise. For Phase 4 it’s already been confirmed that Valkyrie will be portrayed as bisexual; the character’s sexuality was confirmed years ago but never shown. The Eternals will introduce Ikaris, an openly gay man with a family.
It seems like Disney and Marvel are stopping the ongoing straightwashing that's been happening in the MCU. Marvel Studio’s Kevin Feige has often strived for character accuracy in the MCU. Finally, it looks like we're getting it.