SEC Throws Cold Water on Litecoin ETF—LTC Plunges 6% Amid Regulatory Delays

Another day, another crypto dream deferred by the suits in Washington. Litecoin’s price took a nosedive after the SEC—shockingly—pumped the brakes on ETF approval.

Market reaction? Predictable panic. Traders dumped LTC like hot potatoes, proving once again that crypto’s ’decentralized future’ still kneels at the altar of regulatory whim.

Silver lining? At least the SEC’s foot-dragging gives Wall Street more time to figure out how to profit from the eventual approval. Priorities, people.

Litecoin ETF Approval Delayed, What’s Next?

On Monday, May 5, the SEC announced its decision to postpone the Canary Funds Litecoin ETF proposal, which was very much on the expected lines.

The securities regulator is now seeking public input and comments focusing on whether the ETF proposal complies with key regulatory standards, particularly those aimed at preventing fraud and market manipulation.

As per the filing, the public comments are due by May 26, 2025, while rebuttals to the comments shall happen by June 9, 2025. The delay underscores the agency’s cautious approach to cryptocurrency-linked financial products and its commitment to ensuring investor protection.

Furthermore, the US SEC has also delayed its decision on other crypto ETFs, including that for Solana SOL $150.7 24h volatility: 2.6% Market cap: $78.04 B Vol. 24h: $3.80 B , XRP XRP $2.22 24h volatility: 0.8% Market cap: $129.99 B Vol. 24h: $2.17 B , and others. Market experts don’t see this delay as a major concern, but just a sign of further assessment.

“Wouldn’t read too much into SEC delaying decision on Canary’s spot litecoin ETF… New SEC commissioner just sworn in two weeks ago. Has to get feet wet. Still think vast majority of existing crypto ETF filings will be approved before year-end, if not sooner,” ETF Store President Nate Geraci said.

LTC Price Cracks 6% as SEC Delays Litecoin ETF Approval