SEC Delays Decision on Canary’s Litecoin ETF Proposal
The U.S. Securities and Exchange Commission (SEC) has delayed its final ruling on Canary Funds’ proposed Litecoin (LTC) ETF , extending the public comment period until June 9, 2025 , with a final decision expected by June 17.
According to official filings, the SEC aims to assess whether the fund meets regulatory standards for preventing fraud and market manipulation — or if it introduces new legal or operational concerns.
This move aligns with recent delays across several crypto ETF proposals , including those tracking XRP, Hedera , and Dogecoin , signaling the regulator’s cautious stance amid growing demand for digital asset products.
However, Litecoin remains one of the most promising candidates for approval due to its long-standing history, technical similarities with Bitcoin, and broader market adoption.
Canary Funds Leads the Litecoin ETF Race
Canary Funds — part of Canary Capital , founded in 2024 by former Valkyrie Funds co-founder Steven McClurg — is at the forefront of efforts to bring a spot Litecoin ETF to market.
The firm filed its S-1 registration document in October 2024 , followed by a 19b-4 listing application submitted to Nasdaq on January 16, 2025 , officially kicking off the regulatory review process.
While Grayscale and CoinShares are also working on Litecoin ETF applications, Canary holds the lead in filing progress. If approved, this would mark the first altcoin ETF following successful approvals for Bitcoin and Ethereum ETFs — a major milestone for the crypto industry.
Why Litecoin Stands Out as an ETF Candidate
With a current market cap of around $6.2 billion , Litecoin (LTC) is one of the oldest cryptocurrencies, launched in 2011 by Charlie Lee. Often referred to as “digital silver” compared to Bitcoin’s “digital gold,” Litecoin uses a Proof-of-Work consensus mechanism and shares many technical traits with Bitcoin — reducing potential legal uncertainties.
Over the past 24 hours, LTC dropped more than 3% , trading around $82.32 , down from resistance levels near $87.60 following the SEC delay announcement.
Still, analysts remain optimistic. According to Bloomberg Intelligence , Litecoin has a 90% chance of ETF approval in 2025 , outpacing XRP (65%) and Solana (70%). Analyst James Seyffart noted that if any altcoin gets approved soon, it will likely be Litecoin.
SEC Under Paul Atkins: More Crypto-Friendly?
Since President Donald Trump took office in January 2025, the SEC has shown signs of becoming more open to digital assets. New SEC Chair Paul Atkins , replacing Gary Gensler, pledged to provide clearer regulatory guidance and acknowledged the “significant potential benefits” of digital assets.
The commission has already dropped or paused several lawsuits against crypto firms and hosted public discussions on improving crypto regulation.
Still, the Litecoin ETF delay shows the SEC remains cautious , emphasizing investor protection and market integrity. The regulator is reportedly focusing on liquidity, pricing transparency , and mechanisms to prevent market manipulation before greenlighting any new crypto ETFs.
What’s Next when SEC Delays Litecoin ETF?
As the public comment deadline approaches , all eyes are on institutional responses and community feedback. A positive outcome could pave the way for Litecoin to join Bitcoin and Ethereum in the ETF lineup — opening the door for broader adoption and increased institutional interest.
For now, investors and issuers alike await the SEC’s final verdict on June 17 , hoping for a historic step forward in crypto regulation.
