The U.S. Securities and Exchange Commission (SEC) has postponed Canary Funds’ proposal for a Litecoin exchange-traded fund (ETF) listing and trading, and is seeking public feedback, as reported in a Monday-released document.
The Commission is particularly interested in public views on whether the proposal to list and trade shares of the Trust, which would manage LTC, is structured to impede fraudulent and manipulative activities and whether it brings up any fresh or unique issues not previously considered by the Commission,” stated the agency.
At present, the Commission is considering a multitude of proposals for various crypto ETFs. In the last week alone, the SEC has deferred the decision on the listing and trading of crypto ETFs tracking XRP, Hedera, and Dogecoin.
The SEC’s approach to crypto ETFs is expected to be more accommodating than under the previous administration. Since President Donald Trump took office in January, the SEC has dismissed several lawsuits against crypto companies and has organized public crypto roundtables to discuss the regulation of the sector. The new SEC Chair, Paul Atkins, has expressed anticipation for “massive advantages” from digital assets and plans to collaborate with legislators to establish a regulatory framework for cryptocurrencies.
James Seyffart, an ETF analyst at Bloomberg Intelligence, suggested that a Litecoin ETF stands the best chance for early SEC approval, but expected a delay, in a post on X. Grayscale, CoinShares, and Canary are all competing for a Litecoin ETF, according to data from The Block.
“The @CanaryFunds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5,” Seyffart stated on Sunday.
“SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it’s Litecoin IMO.”
Disclaimer: The Block is an autonomous media outlet delivering news, research, and data. As of November 2023, Foresight Ventures is a primary investor in The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to provide objective, impactful, and timely crypto industry information. Our current financial disclosures are available here.
