The U.S. Securities and Exchange Commission (SEC) has delayed its decision on a proposal from Canary Funds to list a spot Litecoin (LTC) exchange-traded fund (ETF). The agency is now asking for public comments on whether the ETF would effectively prevent fraud and manipulation.
In its filing released Monday, the SEC said it wants to know if the Litecoin ETF raises any new or unique concerns that haven’t been addressed before.
This move is part of a broader trend. Over the past week, the SEC has also postponed decisions on crypto ETFs tied to XRP, Hedera, and Dogecoin. Despite the delays, optimism remains high under the current administration.
Since the start of the year when Donald Trump became the President of the United States, the SEC has become more lenient towards crypto. The agency has withdrawn some cases against the crypto firms and has also held public meetings to deliberate on the legal frameworks for digital assets.
New SEC Chair Paul Atkins has stated that he is a believer in the ‘enormous advantages’ of crypto and wants to work with politicians to create a proper regulatory structure.
According to Bloomberg ETF analyst James Seyffart, the Litecoin ETF has a better shot at early approval than others. On X, he said, “If any asset has a chance of early approval, it’s Litecoin, IMO.”
Currently, Canary Funds, Grayscale, and CoinShares are all competing to launch the first Litecoin ETF. But for now, investors will have to wait as the SEC opens the floor to public opinion.
Also Read: Solana & Litecoin ETFs Approval has 90% Chance: Analysts
