The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Canary Capital’s proposed spot Litecoin (LTC) ETF, pushing the deadline for a final ruling to later this year. The regulatory body cited the need for additional time to evaluate the application, marking another setback for crypto-based ETFs seeking approval. This follows similar delays for other digital asset ETFs, including Ethereum, as the SEC maintains a cautious stance toward cryptocurrency investment products.
Market analysts suggest the postponement reflects broader regulatory hesitancy rather than Litecoin-specific concerns. “The SEC is still establishing its framework for crypto ETFs, and LTC is caught in that process,” noted financial strategist Rachel Carter. Despite the delay, Litecoin’s price remained stable, with traders anticipating that eventual approval could drive significant institutional interest. The coin’s upcoming halving event in August 2025 adds another layer of speculation, as reduced supply could impact its ETF eligibility.
Canary Capital’s proposal is one of several crypto ETF applications pending SEC review. While itcoin">Bitcoin ETFs gained approval earlier this year, altcoin-based funds face tougher scrutiny. If approved, a Litecoin ETF could provide a regulated pathway for traditional investors to gain exposure to LTC without holding the asset directly—potentially boosting its long-term adoption.
