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- The SEC has extended its review of Canary Capital’s Litecoin ETF proposal to June 17, 2025.
- Litecoin’s ETF faces delays like other crypto products, but analysts still view its approval chances as strong this year.
The U.S. Securities and Exchange Commission (SEC) has pushed the deadline for the review of Canary Capital’s spot Litecoin (LTC) exchange-traded fund (ETF), setting the last date to June 17, 2025. The decision followed the expiration of the earlier deadline on May 5 without a decision, subjecting investors to uncertainty as they watch for the adoption of Litecoin.
The proposed ETF to list on Nasdaq has been in review by the regulator since the filing in January, when Nasdaq filed the Form 19b-4 for listing. The SEC launched the plan for public review on February 4 and initiated the first 45-day review phase to close by March 21. Later, the process was extended by a further 45 days to establish a new critical date of May 5.
SEC officials currently invite more public opinions to guarantee the new ETF complies with all federal requirements. In a release, the commission stated that it is most interested in whether the listing would deter fraudulent and manipulative activities and practices or pose new or novel issues.
Canary Capital’s Background
Canary Capital, established by former co-founder of Valkyrie Funds Steven McClurg, has attempted to get Litecoin closer to institutional investors. The company first pitched its proposal for a Litecoin ETF in October 2024. The recent delay heated up the debate in the crypto market about the likelihood of Litecoin getting the ETF nod before the other digital assets.
He noted that the SEC has taken a conservative approach to crypto ETFs, with precedent cases presented in similar form as in the case of Franklin Templeton’s application for their XRP ETF. Notwithstanding these delays, Seyffart has also said that Litecoin is among the most promising assets to receive an early green light.
There is a 90% chance that the LTC ETF may receive the nod by the end of 2025, as estimated by Seyffart’s analysis, providing a boost to market optimism. After the SEC delay, the price of Litecoin dropped significantly, falling by 7% in 24 hours to trade above $82, as reported on CoinMarketCap.
Comparison With Other ETF Filings
SEC treatment of the Litecoin ETF parallels its reaction to other proposals for ETFs for crypto. Bitwise’s Dogecoin ETF, as well as Franklin Templeton’s XRP ETF, are similarly pending decisions with deadlines due on June 15 and on June 17. Similarly, the review for the Grayscale Ethereum staking ETF also continues to wait, showing the regulator’s general reluctance to crypto-based financial products.
For Litecoin, the new deadline holds investor tension. Originally designed in 2011 by former Google engineer Charlie Lee, Litecoin is a proof-of-work coin and the 25th largest digital coin in terms of market cap. Though its technical underpinnings are a fork of Bitcoin, the path to regulation for Litecoin has also been similarly complicated.
