SEC Postpones Canary Capital’s Litecoin (LTC) ETF Proposal

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the proposal from Canary Capital for a spot Litecoin (LTC) exchange-traded fund (ETF).

This decision follows the agency’s delays on other spot cryptocurrency ETF applications last week, which included those for XRP, Hedera, and Dogecoin. The lack of a decision on the Canary Litecoin ETF had generated some optimism regarding the fund’s prospects.

On Monday, the regulatory body confirmed the postponement and requested public feedback on whether the proposal meets the necessary regulatory standards.

The SEC filing specifically requested input on the measures in place to safeguard against fraudulent and manipulative activities related to the Trust’s trading shares that would contain LTC.

Canary Capital, established by Steven McClurg, a co-founder of Valkyrie Funds, initially filed the paperwork for the ETF in October.

Litecoin’s native cryptocurrency, LTC, has a market capitalization of $6.6 billion and operates on an open-source blockchain platform with code derived from Bitcoin (BTC).

Analysts at Bloomberg Intelligence had speculated that LTC was prime for ETF inclusion, fueled by suggestions that Canary Capital received SEC feedback on its application in January.

As of now, issuers have not yet witnessed a significant crypto ETF ruling under the newly appointed SEC Chair Paul Atkins, who assumed the role in April.

Bloomberg’s senior ETF analyst Eric Balchunas has described the transition from former Chair Gary Gensler to Atkins as a “game changer.”