SEC Silence Stalls Litecoin ETF Decision as LTC Price Holds Near Monthly Highs
Litecoin (LTC) stays regular close to its month-to-month highs regardless of new regulatory setbacks, as the U.S. Securities and Exchange Commission (SEC) didn’t act on Canary Capital’s proposed spot Litecoin STF. The deadline handed on Thursday with none replace, leaving the much-anticipated product in limbo.
The delay happens at a vital time for crypto ETFs, coinciding with a U.S. authorities shutdown that has hampered monetary oversight and added to the complexity of the approval course of.
SEC Misses Deadline as Litecoin ETF Rules Shift
The SEC was anticipated to determine on Canary’s application by Thursday, however no replace was issued. Analysts observe that the delay could also be due not solely to the shutdown but additionally to a broader shift in how crypto ETFs are managed.
Earlier this yr, the SEC started phasing out the standard 19b-4 submitting course of, which has been traditionally related to strict deadlines, in favour of S-1 registration statements.
Bloomberg ETF analysts James Seyffart and Eric Balchunas argue this transition means previous deadlines “not matter” below the regulator’s evolving framework. Instead, approval timelines might now rely on the SEC’s broader evaluate of recent itemizing requirements, making the method much less predictable.
Shutdown Complicates ETF Reviews
The U.S. authorities shutdown is intensifying the delays. Although the SEC continues with restricted operations, its contingency plan, revealed in August, confirmed that reviewing new monetary merchandise, together with ETF filings, can be paused throughout a shutdown.
This has left Canary’s Litecoin ETF, together with a number of different altcoin-based merchandise, in a holding sample.
Pending purposes for Litecoin, Solana, XRP, Cardano, Avalanche, and Dogecoin ETFs are amongst these affected. These would construct on the success of spot Bitcoin and Ethereum ETFs, which have already attracted greater than $74 billion in inflows.
However, Litecoin faces extra scrutiny, as its regulatory classification stays much less clear than Bitcoin’s standing as a commodity.
Litecoin Price Remains Resilient
Despite the regulatory uncertainty, Litecoin’s worth has stayed resilient. At the time of writing, LTC was buying and selling round $118, approaching a two-month high of $122.
Analysts recommend that if the token can surpass resistance close to $121, a brand new rally may be triggered. The constant upward development signifies investor confidence that approval is extra a matter of timing moderately than rejection.
Market observers describe the SEC’s silence as extra of a “rain delay” than a denial. Once the shutdown concludes and new itemizing requirements are absolutely applied, analysts count on the ETF choice course of to hurry up.
Cover picture from ChatGPT, LTCUSD chart from Tradingview