SEC Postpones Ruling on Canary Digital's Request for Litecoin Exchange-Traded Fund
Freakin' SEC Hits the Brakes on Canary Capital's Spot Litecoin ETF
The Swaggering U.S Securities and Exchange Commission (SEC) has tossed a curveball at Canary Funds, delaying their bid to list a Litecoin (LTC) spot Exchange-Traded Fund (ETF). The agency wants y'all to chime in on whether this bad boy would nip fraud and manipulation squarely in the bud.
In their filing dropped on Monday, the SEC is seeking answers about whether the Litecoin ETF brings any fresh, unaddressed concerns to the table.
This just keeps on rollin'. Over the past week, the SEC's been pushin' back decisions on crypto ETFs tied to XRP, Hedera, and Dogecoin. Yet, the vibe remains optimistic under the current administration.
Ever since ol' Donald Trump moved into the White House back in January, the SEC's been showin' crypto some love. They've dropped cases against crypto firms and convened public meetings to chat about the legal landscape for digital assets.
New SEC Chair Paul Atkins has a hankerin' for the 'whopping advantages' of crypto and wants to partner with politicos to establish a solid regulatory structure.
According to James Seyffart, ETF analyst over at Bloomberg, the Litecoin ETF's got a better chance to snag early approval compared to others. On X, he spilled the beans, "If any asset's got a real shot at early approval, it's Litecoin, IMO."
For now, Canary Funds, Grayscale, and CoinShares are sluggin' it out to be the first to launch a Litecoin ETF. But for the time being, investors gotta sit tight while the SEC opens the floor to public commentary.
Also, don't miss out on: Solana & Litecoin ETFs Approval Got a 90% Chance: Analysts
(Enrichment data incorporated: The SEC's delay in decision making is part of their ongoing review of crypto ETFs, with concerns about fraud prevention and market integrity. The public comment period remains open until May 26, 2025, with rebuttals due by June 9, 2025. The delay is viewed as procedural rather than outright rejection. Litecoin's price took a dip of around 5-6% following the delay announcement.)
- The Securities and Exchange Commission (SEC) has also delayed decisions on crypto ETFs tied to XRP, Hedera, and Dogecoin, similar to the Litecoin (LTC) spot Exchange-Traded Fund (ETF).
- Despite the SEC's delay in decision making, the vibe remains optimistic among investors about potential approvals for various crypto ETFs, including Solana and Litecoin.
- In response to the delay, the SEC is deliberating on whether the Litecoin ETF brings any novel, unaddressed concerns regarding fraud and manipulation that require attention, as mentioned in their filing on Monday.
- new SEC Chair Paul Atkins, who holds a positive view of crypto, has expressed intentions to collaborate with policymakers to create a robust regulatory framework for digital assets in finance and technology.
- In light of the public comment period, Grayscale, CoinShares, and Canary Funds continue to compete to be the first to launch a Litecoin ETF, although investors must remain patient until the SEC has thoroughly reviewed the concerns raised during the comment period.
