The Securities and Exchange Commission (SEC) has postponed its decision on the Spot Litecoin (LTC) Exchange Traded Fund (ETF) proposed by Canary Capital. This delay follows a similar decision on various other Spot Crypto ETFs last week, including those for XRP, Hedera, and Dogecoin; however, Canary’s Litecoin application remains in limbo.
On Monday, which marked the official deadline, the SEC announced the postponement while inviting public feedback regarding compliance with its regulations. Specifically, the SEC is interested in comments regarding whether the proposed listing and trading of stocks within trusts that hold LTCs adequately addresses potential fraudulent or manipulative conduct, or if it introduces previously unconsidered issues.
Canary Capital, established last year by former Valkyrie Funds co-founder Steven McClurg, initially submitted the fund’s paperwork in October. Currently, LTC has a market cap of around $6.6 billion and serves as the native cryptocurrency of Litecoin, a blockchain project derived from Bitcoin code.
Bloomberg Intelligence ETF experts have suggested that LTC could eventually be included in this ETF framework, particularly in light of SEC comments on Canary’s January application. Still, no major decisions regarding Crypto ETFs have emerged from the new SEC Chair, Paul Atkins, appointed to succeed former chairman Gary Gensler.
Some analysts, like Eric Bulknath, a senior ETF analyst, view these developments as significant variables in the landscape of cryptocurrency ETFs.
