XRP news today: SEC's May 5 Decision on Litecoin ETF Approval Odds Surge to 79%
1min read The US Securities and Exchange Commission (SEC) is set to make a crucial decision on May 5 regarding the proposed spot Litecoin (LTC) exchange-traded fund (ETF) by Canary Capital. This deadline has garnered significant attention from market watchers, who have grown increasingly optimistic about the approval odds, which have surged to their highest point since mid-March.
On January 2025, Nasdaq submitted the proposed rule change (Form 19b-4) to list and trade shares of the Canary Litecoin ETF. The proposal was published for public comment in the Federal Register on February 4, commencing a 45-day review period that concluded on March 21. However, the SEC opted to extend this period by an additional 45 days, setting May 5 as the new 90-day deadline. The regulator's statement read, "Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates May 5, 2025, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR-NASDAQ-2025-005)."
The SEC has made similar moves for other cryptocurrency ETF applications. On April 29, the SEC postponed its decision on Franklin Templeton’s spot XRP (XRP) ETF until June 17 and Bitwise’s Dogecoin (DOGE) proposal until June 15. Grayscale’s Ethereum (ETH) staking ETF also faced the same fate. Earlier, on April 24, the regulator delayed decisions on Bitwise’s Bitcoin (BTC) and Ethereum ETFs and ETF. The new deadlines are now on June 10 and 11, respectively. Similarly, Grayscale’s application to convert its Polkadot (DOT) Trust into an ETF was also delayed, with the new decision deadline set for June 11.
However, the SEC’s decision not to delay the Litecoin ETF beyond the 90-day deadline has drawn significant attention from the community. An analyst highlighted this in a recent post, noting that while Litecoin might be approved sooner, a delay is still the more probable outcome. The analyst emphasized that if any asset has a chance of early approval, it’s Litecoin. Personally, the analyst thinks a delay is more likely but def something to watch.
Previously, the analyst estimated that the Litecoin ETF had the highest chance of approval, 90%, among all altcoin ETFs. This prediction seems to align with market sentiment. On the prediction platform, approval odds surged to 79%, the highest since mid-March. Additionally, the odds for approval by July saw a boost, rising to 49%. A decision in favor of the ETF could pave the way for broader adoption of Litecoin, often regarded as a lighter, faster alternative to Bitcoin. Conversely, disapproval or further delay could signal continued regulatory hesitation in the crypto space. As the clock ticks, all eyes remain on the SEC’s next move.
