SEC Misses Deadline for Canary Capital’s Litecoin ETF
The U.S. Securities and Exchange Commission (SEC) missed its October 2 deadline to decide on Canary Capital’s proposed spot Litecoin (LTC) exchange-traded fund (ETF). The delay leaves investors and the crypto market uncertain. The SEC has not provided any public explanation for the delay.
Earlier this year, the SEC asked firms to withdraw their 19b-4 filings, used for exchange rule changes, and submit S-1 registration statements for ETF approval instead. Canary Capital withdrew its 19b-4 application on September 25, following the SEC’s instructions.
FOX News reporter Eleanor Terrett noted, “Since the generic listing standard went into effect and the agency asked issuers and partner exchanges to withdraw their 19b-4s, I’m told the deadlines technically no longer matter.”
Analysts say this regulatory change makes the old 19b-4 deadlines less relevant. However, it adds uncertainty to the crypto ETF approval process, which is already under close scrutiny.
Government Shutdown Slows ETF Approvals
The SEC stated in August that during a federal government shutdown, it would “not review and approve applications for registration.” This includes new financial products, self-regulatory organization rule changes, and accelerated registration statements.
Although the SEC continues to operate with limited staff, the shutdown has slowed the review of new ETF applications. This delay affects Canary Capital’s Litecoin ETF proposal and others in the pipeline.
Litecoin Market and Crypto ETF Landscape
Litecoin is trading at $116.51, down 2.41% in the last 24 hours. It ranks #19 by market capitalization, which is $8.89 billion, up 2.25% for the day. Its 24-hour trading volume is $1.15 billion, down 13.47%, according to CoinMarketCap.
Canary’s Litecoin ETF is one of several altcoin funds under review in the U.S. Proposals for Solana, XRP, Avalanche, Cardano, Chainlink, and Dogecoin ETFs are also pending. Bitcoin and Ethereum spot ETFs have already attracted over $74 billion, showing strong institutional interest.
Major asset managers like Fidelity, Franklin Templeton, and Bitwise have submitted updated S-1 filings for spot Solana ETFs, some with staking options. Analysts expect the SEC may approve some ETFs by mid-October.
The SEC’s delay highlights ongoing challenges in U.S. crypto regulation. Procedural changes and limited staffing during the government shutdown leave issuers and investors waiting for clarity.
