The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the approval of the spot Litecoin ETF proposed by Canary Capital, continuing the trend of delaying other altcoin funds. Is this a sign of a new turning point in the crypto market? Let's analyze in detail.


Canary Capital Proposes Litecoin ETF

Canary Capital, based in Nashville, Tennessee, filed in October 2024 to launch a spot Litecoin ETF (Canary Litecoin ETF), allowing investors to access Litecoin without directly owning it. The SEC is expected to make a decision on Monday but has postponed it – a familiar move with ETF applications. Litecoin ($LTC ), a proof-of-work cryptocurrency launched in 2011 by former Google employee Charlie Lee, currently ranks 25th by market capitalization, trading around $83, down 2.2% in the past 24 hours (according to CoinGecko).


Altcoin ETF Trends: Momentum from New Policies

After the approval of the spot Bitcoin ETF (the most successful in ETF history) and Ethereum last year – after a decade of rejecting Bitcoin – #SEC now has new leadership under crypto-friendly President Donald Trump. This has prompted asset managers like Bitwise, Franklin Templeton, Grayscale, and 21Shares to apply for altcoin funds, targeting major coins like Solana, XRP, and Cardano. However, the SEC continues to delay, as seen with XRP and Dogecoin last week, reflecting caution in approvals.


Impact on the Crypto Market

This event brings many signals:



  • Altcoin potential: Delays are not rejections, opening up hopes for Litecoin and other altcoins, especially as the Bitcoin ETF attracted $1.8 billion last week and Ethereum is set to upgrade to Fusaka.


  • Increased legal pressure: The surge in ETF applications (over 70 altcoin applications) forces the SEC to consider, potentially leading to a clearer regulatory framework in the next 1-2 years.

  • Short-term volatility: The price of Litecoin dropping 2.2% shows an immediate negative reaction, but long-term trends depend on the final decision (expected by late 2025).



Future Prospects

With crypto fund inflows reaching $3.4 billion last week and projected to accumulate $330 billion into Bitcoin by 2029 (Bernstein), the altcoin market like #Litecoin could benefit if the ETF is approved. The participation of financial giants and crypto-friendly policies from Trump promise to drive growth in the next 3-5 years.


Conclusion: Will the Litecoin ETF Change the Game?

The SEC postponed the approval of Canary Capital's Litecoin ETF, but this move does not dampen hopes for altcoins in the context of successful Bitcoin and Ethereum ETFs. With Litecoin trading at $83 and the potential from new policies, this could be a precursor to a wave of altcoin ETFs. Investors should keep a close eye to seize opportunities in this promising market.


Risk Warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.