Litecoin falls by 5% after the SEC delays the ETF filing due to fraud concerns ⚠️

The U.S. Securities and Exchange Commission has postponed Canary Capital's application for a Litecoin exchange-traded fund today and opened public comments regarding the proposal's compliance with regulatory requirements. The price of LTC dropped by 5% following the announcement.

The public comment aspect does not seem to indicate the committee's intentions; this could be a standard delay tactic. However, the market immediately took it as a bearish signal.

Will the SEC reject Canary's Litecoin ETF?

A few months ago, analysts suggested that the Litecoin ETF was more likely to receive SEC approval than any other altcoin ETF. Its Polymarket odds briefly reached 85% in February, and today's SEC deadline heightened community enthusiasm. $SOL

However, the market can react harshly to such developments in the short term, and traders are repositioning their bets on the altcoin.