- The SEC delays decision on Canary’s Litecoin ETF.
- New SEC leadership influences regulatory timelines.
- Investor uncertainty impacts altcoin markets.
The SEC has postponed Canary Capital’s Litecoin ETF decision, coinciding with a leadership transition at the agency.
The U.S. Securities and Exchange Commission (SEC) postponed the decision on Canary Capital’s spot Litecoin ETF, initially set for May 5, 2025. Public input is now open until May 26, with a rebuttal period concluding on June 9.
The proposal originates from Canary Capital, founded by Steven McClurg. Nasdaq submitted the listing proposal in January 2025. Changes at the SEC, including a new commissioner, may influence the approval process. The announcement impacts the altcoin ETF market, notably Litecoin, as the cryptocurrency struggles near $90. The decision reflects broader regulatory scrutiny on altcoin-based financial products.
Financially, the delay adds to investors’ uncertainty. Politically, the appointment of a new SEC chair, Paul Atkins, presents uncertainties in crypto regulatory outlooks.
“we are seeking comment on whether the proposal to list and trade Shares of the Trust, which would hold LTC, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission” — U.S. Securities and Exchange Commission, Official Statement
Analysts hold guarded optimism for the Litecoin ETF, considering past rejections of similar applications. They predict possible approval by year-end, based on current trends.
