The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Canary Funds' Litecoin (LTC) spot ETF application and announced that it wants to gather public opinions.
The SEC has been making significant decisions regarding cryptocurrency ETFs recently. Decisions on ETFs tracking crypto assets such as XRP, Hedera, and Dogecoin were postponed in the last few weeks. Now, reviews of Canary Funds' ETF application for Litecoin are ongoing. The SEC is questioning whether the application is designed to prevent abuses such as fraud and manipulation or if it raises new concerns that were not previously considered.
The SEC has called for public comments during this process. This is seen as an important step in the approval process for crypto ETFs. Previously, the SEC's former administration had adopted a more cautious approach to cryptocurrency ETFs. However, new chairman Paul Atkins stated that significant benefits could be gained from digital assets, expressing their intention to create a new regulatory framework in this area.
Early approval expectations for Litecoin ETFs
James Seyffart, an ETF analyst at Bloomberg Intelligence, stated that the Litecoin ETF is expected to be one of the first ETFs to receive early approval from the SEC, but this decision could still be postponed. Grayscale, CoinShares, and Canary Funds are among the significant firms applying for the Litecoin ETF.