SEC Further Delays Decision on Canary Capital's Spot Litecoin ETF

SEC Further Delays Decision on Canary Capital's Spot Litecoin ETF

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on Canary Capital's proposal for a spot Litecoin (LTC) exchange-traded fund (ETF). This delay comes as the regulator seeks public comments on whether the listing proposal satisfies regulatory requirements, particularly in preventing deceptive and manipulative practices [1].

The SEC initially set a deadline of May 5 for the decision, but it has now extended the review period by 45 days, pushing the decision back to May 17, 2025 [1]. This extension follows a similar pattern observed with other cryptocurrency ETF filings, such as Bitwise's Dogecoin (DOGE) proposal and Franklin Templeton's spot XRP (XRP) ETF, both of which were also delayed until June 15 and June 17, respectively [1].

The delay has sparked conversations within the crypto community. James Seyffart, a Bloomberg analyst with extensive experience in ETFs, had predicted that the SEC would postpone the decision on the Litecoin ETF, aligning with its past actions on other cryptocurrency ETF filings [1]. Seyffart also noted that Litecoin has the best chance of receiving early approval, predicting a 90% chance of approval in 2025 [1].

As of May 6, 2025, Litecoin is trading at over $83, down by 2.2% over the past 24 hours [2]. Litecoin, a proof-of-work cryptocurrency and the 25th largest digital coin by market cap, was established in 2011 by ex-Google employee Charlie Lee [1].

The extension of the review period is a standard practice for the SEC, allowing them to thoroughly assess the proposals and gather public feedback. This delay is part of the SEC's ongoing efforts to ensure the integrity and security of the financial markets [1].

References:
[1] https://www.cryptopolitan.com/sec-stalls-canary-ltc-etf-decision/
[2] https://coinmarketcap.com/community/articles/68189811cb54f53b89200751/