SEC Delays Decision on Litecoin ETF Proposal, Seeks Public Feedback
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Canary Capital's proposal for a spot Litecoin (LTC) exchange-traded fund (ETF). This follows previous delays on other crypto ETF applications, including those for XRP, Hedera, and Dogecoin.
Key points:
- The SEC issued the delay on the official deadline and requested public comments regarding the proposal's regulatory compliance.
- The agency is particularly interested in comments about the proposal’s design to prevent fraudulent practices.
- Canary Capital, founded by Steven McClurg in 2023, submitted its initial ETF paperwork in October.
- LTC has a market cap of $6.6 billion and is the native cryptocurrency of the Litecoin blockchain.
- Bloomberg Intelligence had previously suggested that LTC could be among the next cryptocurrencies to receive an ETF approval.
- No major decisions on crypto ETFs have been made since SEC chair Paul Atkins took office in April, following his predecessor Gary Gensler.