SEC stalls Canary $LTC ETF decision and opens public comment period

The U.S. Securities and Exchange Commission (SEC) has further postponed the decision on Canary Capital’s proposal for a spot Litecoin (LTC) exchange-traded fund (ETF). The SEC’s most recent action comes after the regulator decided to postpone verdicts on active altcoin ETF filings until June 17. The agency is seeking public comments on whether the listing proposal satisfies regulatory requirements, specifically preventing deceptive and manipulative practices. “In particular, the Commission seeks comment on whether the proposal to list and trade Shares of the Trust, which would hold LTC, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission,” the agency wrote in a filing. James Seyffart’s prediction becomes a reality The SEC revealed in a statement that it has further delayed deciding on Canary Capital’s proposal for a spot Litecoin (LTC) exchange-traded fund (ETF). In light of this action, the agency is requesting an inquiry into whether Nasdaq’s proposal to list the ETF conforms with legal requirements. Canary Capital, which was founded by former Valkyrie Funds co-founder Steven McClurg last year, had submitted initial paperwork for the fund in October. The decision has generated conversations within the crypto community. James Seyffart , a Bloomberg analyst with extensive experience, especially with Exchange-Traded Funds (ETFs), offered commentary on the subject. Based on Seyffart’s argument, he correctly predicted that the SEC would postpone making a decision on the Litecoin ETF, as it had done with other cryptocurrency ETFs so far, such as Franklin Templeton’s XRP ETF filing. Moreover, according to Seyffart, Litecoin is the asset with the best chance of receiving early approval . Recently, the analyst predicted that there was a 90% chance that an LTC ETF would be approved this year, which gave the price of Litecoin a positive outlook. According to CoinMarketCap, Litecoin is currently down by 2.2% over 24 hours, trading hands for over $83. Litecoin (LTC) is a proof-of-work cryptocurrency and the 25th biggest digital coin by market cap. The asset is a forked version of Bitcoin established in 2011 by ex-Google employee Charlie Lee. The SEC has delayed Canary Capital’s Litecoin ETF just like other crypto ETF proposals The SEC was set to decide on the proposed spot in Canary Capital’s Litecoin ETF on May 5. In the meantime, market observers had become more hopeful. In support of this, on Polymarket, approval odds had risen to their highest level since the middle of March. In January, Nasdaq reportedly filed Form 19b-4, a proposed rule change, to list and trade Canary’s Litecoin ETF shares. The proposal was then made available for public comment in the Federal Register on February 4. This was the first day of the 45-day review period, which ended on March 21st. However, the SEC decided to make this time frame longer by 45 days, setting a new 90-day deadline of May 5. The statement said, “Accordingly, the Commission, under Section 19(b)(2) of the Act, 6 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).” For other cryptocurrency ETF applications, the regulator has taken similar actions. The SEC delayed its decision on Bitwise’s Dogecoin (DOGE) proposal until June 15 and Franklin Templeton’s spot XRP (XRP) ETF until June 17. This was also the case with Grayscale’s Ethereum (ETH) staking ETF. Your crypto news deserves attention – KEY Difference Wire puts you on 250+ top sites

Source: Cryptopolitan