SEC Delays Litecoin ETF Decision, Market Remains Optimistic

The U.S. Securities and Exchange Commission (SEC) recently delayed its review of the Litecoin (LTC) spot exchange-traded fund (ETF) proposal submitted by Canary Funds. The SEC stated that it is seeking public input on whether this ETF can effectively prevent fraud and market manipulation. This move reflects the regulatory body's cautious attitude towards the cryptocurrency market and considers whether the Litecoin ETF would raise new regulatory issues.

Similarly, the SEC also postponed approvals for ETFs related to XRP, Hedera, and Dogecoin last week. Despite this, under the current administration, the market remains optimistic about cryptocurrencies. Since President Trump took office, SEC's regulation of cryptocurrencies has gradually relaxed, retracting some cases against crypto companies and exploring the legal framework for digital assets.

New SEC Chairperson Paul Atkins has a positive stance on cryptocurrencies, believing they have "great advantages," and expressed a desire to collaborate with policymakers to create an appropriate regulatory structure. Bloomberg ETF analyst James Seyffart pointed out that the Litecoin ETF is more likely to receive early approval compared to other ETFs and believes it may be the first to get approved in the future.

Currently, institutions like Canary Funds, Grayscale, and CoinShares are competing to launch the first Litecoin ETF, although investors will still need to patiently wait for the SEC's results from the public comment period.