The US Securities and Exchange Commission has postponed its ruling on Canary Capital's proposal for a Litecoin spot exchange-traded fund. This move follows the agency's delay of several other spot cryptocurrency ETF applications, including those for XRP, Hedera, and Dogecoin, last week. Despite not initially delaying the Canary Litecoin ETF, the regulator has now announced a postponement and is seeking public feedback on the proposal's adherence to regulatory standards. In a filing, the Commission requested input on whether the proposed listing and trading of the Trust's shares, which would hold Litecoin, is designed to prevent fraudulent activities and whether it raises any unprecedented concerns.
Canary Capital, established by former Valkyrie Funds co-founder Steven McClurg, submitted the initial application for the fund in October. With a market capitalization of $6.6 billion, Litecoin is the native cryptocurrency of an open-source blockchain project derived from Bitcoin's code. According to Bloomberg Intelligence ETF experts, Litecoin is likely to be the next cryptocurrency to be included in an ETF, given that Canary Capital received comments from the SEC regarding its application in January. The SEC, now led by Chair Paul Atkins, has yet to make a significant decision on cryptocurrency ETFs since his appointment in April, introducing a variable that could impact the outcome.