SEC Postpones Decision on Canary’s Spot Litecoin ETF, Seeks Public Feedback
The post SEC Postpones Decision on Canary’s Spot Litecoin ETF, Seeks Public Feedback appeared on BitcoinEthereumNews.com.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether to approve a proposed spot Litecoin exchange-traded fund (ETF) from Canary Funds. The regulator announced on Monday that it will extend its review period and is now inviting public comments on the proposal’s merits and potential market implications. SEC Extends Review Period Canary Funds, a Nashville-based asset manager founded last year by Steven McClurg — a former Valkyrie Funds co-founder — filed its initial application for the Canary Litecoin Trust in October 2024. The proposed product would offer direct exposure to Litecoin (LTC), a cryptocurrency with a market capitalization of approximately $6.6 billion. Like Bitcoin, Litecoin operates on an open-source blockchain, having been developed from Bitcoin’s original codebase. Opening Floor For Public Feedback The SEC confirmed on the day of its deadline that it would not be issuing an immediate decision. Instead, the agency has opened a period for public feedback to assess whether the proposed ETF meets regulatory standards designed to deter market manipulation and protect investors. The agency claimed, “In particular, the Commission seeks comment on whether the proposal to list and trade Shares of the Trust, which would hold LTC, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission.” Growing Interest in Crypto ETFs The postponement follows a recent wave of delays for several other altcoin ETF applications, including those tied to XRP, Hedera, and Dogecoin. Until now, the Canary Litecoin ETF had remained untouched, leading to speculation among market watchers that the regulator might be preparing a different course for this application. According to Bloomberg Intelligence ETF analyst James Seyffart, a Litecoin ETF stands among the most likely candidates for early approval under the SEC’s new leadership. In a…
Filed under: News - @ May 7, 2025 5:27 am