$LTC The U.S. Securities and Exchange Commission has chosen to postpone its decision regarding a spot Litecoin ETF, leaving the proposal submitted by Canary Funds in a longer review process as it opens the floor for public commentary.

Canary Funds envisions a groundbreaking product that tracks Litecoin (LTC), promising investors direct access through a regulated exchange. This ETF would function similarly to those linked to Bitcoin, delivering exposure without the necessity of holding crypto directly.

In a recent announcement, the SEC confirmed that a decision would not be made just yet. Instead, they are reaching out to the public, seeking insights on whether the fund can safeguard investors and prevent market manipulation. They are also probing if Litecoin introduces any novel risks that previous applications have overlooked.

This decision comes on the heels of delays affecting other altcoin ETFs, including those for XRP and Dogecoin. Yet, some experts hold an optimistic view, suggesting that Litecoin may have a more favorable chance than its counterparts. With its established history, robust trading volume, and fewer legal entanglements, it stands out.

Analyst James Seyffart recently expressed a hopeful outlook, suggesting that Litecoin could emerge as the first non-Bitcoin ETF to gain approval under the SEC's newly appointed leadership. This leadership, now more welcoming to cryptocurrency, has set aside several past cases and is contemplating clearer regulations. #CryptoRegulation