SEC is about to make a decision on the Litecoin ETF: Is it a real opportunity or just a temporary non-delay?
The U.S. Securities and Exchange Commission (SEC) is expected to soon make a decision on the Litecoin ETF proposed by Canary Capital. As of May 5, the application has not yet been delayed – a rarity in the context of most other cryptocurrency applications being significantly 'extended'.
This detail has sparked speculation that the SEC may be preparing to respond soon. Analyst James Seyffart from Bloomberg ETF noted in a post on X that, although other applications have been delayed, that has not yet happened with Litecoin. 'If any asset has a chance of being approved early, it is Litecoin,' Seyffart commented – although he still leans towards the possibility of a delay.
The Litecoin ETF proposal was submitted on January 16 under Nasdaq's 19b-4 form, aiming to change rules for listing a new product. The SEC officially received the application on January 29, initiating the review process. This is a critical turning point, especially in the context of previous ETF efforts related to altcoins being met with 'cold water' under the former SEC leadership.
Technically, the price of Litecoin on May 5 is around $87, up slightly 0.9% on the day and nearly 10% compared to two weeks ago. The chart shows a clear recovery momentum from the April bottom, with the price currently above the MA50 line at $82.87. The RSI is at 56 – still has room for increases before overbought – while the Bollinger bands are widening, reflecting increasing volatility.
Trading volume remains stable, not overly explosive, indicating that interest is still there but not swept up in hype. The near support levels are at $82 and $78, while strong resistance is at $90 – if broken, it could trigger a new upward wave.
Although the final outcome from the SEC remains uncertain, it is clear that Litecoin is being observed by the market more closely than ever. If the ETF is approved, it could be a powerful catalyst for the upcoming price trend.