The U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding Canary Capital’s proposal for a Litecoin (LTC) exchange-traded fund (ETF), prolonging the uncertainty surrounding the launch of the first-ever Litecoin ETF. In its latest filing, the SEC disclosed that it is seeking public comments and rebuttals on the proposal, with deadlines for submissions set for May 26 and rebuttals due by June 9.
Delays in SEC Decision Process
The delay follows a pattern observed with previous crypto ETF filings, including those from Franklin Templeton for XRP. Bloomberg analyst James Seyffart had predicted that the SEC would postpone the decision, as it has done with other cryptocurrency-related ETFs. However, Seyffart also stated that of all crypto assets, Litecoin stands the best chance for approval, with the likelihood of a favorable ruling estimated at 90%.
Despite the delay, the potential for a Litecoin ETF is still viewed as highly promising by analysts. A successful approval could provide a boost to Litecoin’s price, though the asset’s value remained steady at around $83, marking a slight decline of over 3% in the last 24 hours following the SEC’s announcement.
LTC ETF’s Market Impact and Timeline
The SEC’s decision to delay also indicates a deeper review of whether Nasdaq’s proposal to list the LTC ETF meets all regulatory standards. This ongoing regulatory scrutiny is a significant part of the SEC’s process in evaluating the suitability of crypto ETFs for public trading. While the final verdict remains unclear, the probability of an eventual Litecoin ETF approval continues to generate optimism for the broader cryptocurrency market.
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