Yo, Here's the Lowdown on the Litecoin ETF Delay
The Real Deal
SEC Delays Decision on Canary Capital's Proposed Litecoin ETF
The U.S.Securities and Exchange Commission (SEC) held off on approving a new crypto exchange-traded fund (ETF) that offers investors exposure to Litecoin. Instead, the Wall Street regulator deferred their decision on the proposed product, a common step in dealing with such applications.
Nashville, Tennessee-based Canary Capital, who filed the paperwork for the Canary Litecoin ETF back in October 2024, is now playing the waiting game. The SEC has a pile of altcoin ETF applications to sort through after giving the green light to spot Bitcoin ETFs last year - a decision that saw the most successful ETF launch ever.
Seeking Input
The SEC's delay in approving the Canary Litecoin ETF isn't a deal-breaker; they're simply seeking public comments to ensure the proposal meets regulatory requirements. Given the SEC's history - they denied Bitcoin funds for a decade before eventually giving them the go-ahead - and the recent election of crypto-friendly President Trump, asset managers are giving altcoin-based ETFs another shot.
Other top players, such as Bitwise, Franklin Templeton, Grayscale, and 21Shares, have thrown their hats in the ring with ETFs focusing on coins like Solana, XRP, and Cardano. The SEC frequently postpones decisions on proposed products like ETFs, recently pushing back the decision on XRP and Dogecoin applications.
About Litecoin
Litecoin is a proof-of-work cryptocurrency, the 25th largest digital coin by market cap. Founded by former Google employee Charlie Lee in 2011, Litecoin is a forked version of Bitcoin. Currently, it's trading at over $83, down by 2.2% over a 24-hour period, according to CoinGecko data.
More ETF Action
While Canary Capital's Litecoin ETF is delayed, other notable applications like Grayscale and CoinShares are pushing ahead. Grayscale submitted an application in January 2025 to convert its existing Grayscale Litecoin Trust into a spot Litecoin ETF, to be listed on the New York Stock Exchange Arca. European digital asset management company CoinShares also submitted an application for a spot Litecoin ETF in January 2025 to be traded on the Nasdaq.
Meanwhile, there's no clear update on Litecoin ETF applications from Bitwise, Franklin Templeton, or 21Shares at this time, although these companies are active in the cryptocurrency market. Keep your eyes peeled for more developments!
Edited by Andrew Hayward
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- The Securities and Exchange Commission (SEC) postponed its decision on the Canary Litecoin ETF, a common step in dealing with crypto exchange-traded fund (ETF) applications.
- The Canary Litecoin ETF, which was filed by Canary Capital in October 2024, is now undergoing a waiting period due to the SEC's decision deferment.
- The SEC is seeking public comments to ensure the Canary Litecoin ETF proposal meets regulatory requirements.
- Despite the delay, asset managers are giving altcoin-based ETFs another shot, given the SEC's history and the recent election of a crypto-friendly President.
- Other companies, such as Bitwise, Franklin Templeton, Grayscale, and 21Shares, have filed ETF applications focusing on coins like Solana, XRP, and Cardano.
- Litecoin is a proof-of-work cryptocurrency and the 25th largest digital coin by market cap, founded by former Google employee Charlie Lee in 2011 as a forked version of Bitcoin.
- Grayscale submitted an application in January 2025 to convert its existing Grayscale Litecoin Trust into a spot Litecoin ETF, to be listed on the New York Stock Exchange Arca.
- European digital asset management company CoinShares also submitted an application for a spot Litecoin ETF in January 2025, to be traded on the Nasdaq.
- While there's no clear update on Litecoin ETF applications from Bitwise, Franklin Templeton, or 21Shares at this time, these companies are active in the cryptocurrency market.
- Cryptocurrencies like Litecoin, Bitcoin, Ethereum, and various altcoins are digital assets that can be bought, sold, and traded on crypto exchanges, DApps, and decentralized finance (DeFi) platforms.
- Investing in Bitcoin, Ethereum, or other digital assets like Litecoin requires understanding the technology and market, and involves a level of risk due to their decentralized nature, price volatility, and potential regulatory changes.
