The SEC has delayed its decision on the proposed spot Litecoin ETF from Canary Funds, instead opening the proposal to public comment. The ETF, which would offer direct exposure to Litecoin (LTC), was filed in October 2024 by Canary Funds, led by Valkyrie Funds co-founder Steven McClurg.
The SEC is seeking feedback on whether the fund structure meets standards for preventing fraud and manipulation.
This delay aligns with recent postponements for other altcoin ETFs like those for XRP and Dogecoin. Despite the holdup, analysts like Bloomberg’s James Seyffart believe Litecoin is still a strong candidate for early approval due to its technical similarity to Bitcoin.
Interest in Litecoin ETFs is rising, with firms like Grayscale and CoinShares also competing for approval. The regulatory outlook has shifted under new SEC Chair Paul Atkins, appointed by President Trump, who has shown support for crypto innovation and scaled back enforcement actions.
As public comments are gathered, the crypto community is watching to see if Litecoin will be the next to secure a U.S.-based ETF.
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