SEC Delays Canary Litecoin ETF: Is This Just a Tactic to Stall Approval?

Bearish Signal? SEC Delays Canary Litecoin ETF as Markets React Sharply

Canary Capital’s application for a Litecoin ETF was postponed by the SEC today, allowing the public to comment on whether the idea complies with regulatory standards. The statement caused a 5% decline in the price of LTC. The Commission’s aims do not seem to be indicated by the public comment component. This could be a common strategy for delaying things. Still, the market saw it as a bearish warning right away.

SEC Delays Litecoin ETF Despite Previously High Approval Odds

Analysts suggested a few months ago that the Litecoin ETF had a higher chance than any other cryptocurrency ETF of receiving SEC clearance. In February, its Polymarket odds momentarily hit 85%, and the SEC deadline today fueled even more community excitement. The SEC, however, chose to postpone this application and included a notice asking for public opinion.

The Commission seeks and encourages interested persons to provide comments on the proposed rule change. The Commission asks that commenters address the sufficiency of whether the proposal… is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission,

SEC

SEC Postponement Casts Doubt on Altcoin ETF Approvals in 2025

To be clear, this request does not necessarily indicate a bearish trend. The SEC recently postponed a number of the cryptocurrency ETF proposals that it is currently considering. However, the likelihood of a 2025 approval mostly stayed constant, while Polymarket‘s chances of approving a Litecoin ETF in Q2 2025 also fell. Although the most optimistic estimates suggest that altcoin ETFs could be approved in the second quarter, this prediction now seems highly unlikely.

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