#LTC The US Securities and Exchange Commission (SEC) has postponed its decision on the Canary Capital application to create an exchange-traded fund (ETF) based on Litecoin (LTC)

The SEC has called for public comments on the compliance of the Canary Capital application for the LTC-ETF with all regulatory requirements. In response, the price of Litecoin fell by 6%.

Prospects for the Litecoin ETF

A few months ago, analysts suggested that the Litecoin ETF had a better chance of approval from the SEC than other altcoin-based exchange-traded funds. The likelihood that the regulator would give a "green light" to LTC reached 85%. However, the Commission has postponed the approval timelines for the Canary Capital proposal — the same happened earlier with applications from other asset managers for launching XRP and DOGE ETFs.

Postponing deadlines is not necessarily a negative signal. Currently, the SEC is reviewing more than 70 applications for launching altcoin ETFs. Delays may be a standard part of the process. Nevertheless, the market reacted negatively.