LTC Faces Market Volatility as SEC Delays ETF Approval

The SEC’s decision to delay the approval of a Litecoin ETF has caused a 5% dip in LTC’s price, despite earlier optimism. Analysts had previously rated Litecoin as the altcoin most likely to secure ETF approval, with Polymarket odds reaching 85% in February. The delay, attributed to concerns over fraud prevention mechanisms, has sparked bearish sentiment in the short term. However, the SEC’s request for public comments appears procedural, leaving room for future optimism.

SEC Delays Litecoin ETF Decision, Sparking Market Dip

Litecoin fell 5% following the SEC’s decision to delay Canary’s proposed ETF, citing concerns over fraud prevention mechanisms. The move triggered immediate bearish sentiment despite analysts previously rating LTC as the altcoin most likely to secure ETF approval.

Polymarket odds had surged to 85% in February, reflecting strong community anticipation. The SEC’s request for public comments appears procedural rather than indicative of final judgment, though markets reacted decisively to the setback.

SEC Delays Decision on Canary’s Litecoin ETF, Opens Public Comment Period

The U.S. Securities and Exchange Commission has postponed its verdict on Canary Capital’s proposed spot Litecoin ETF, pushing the decision deadline to June 17. This marks another regulatory hurdle for cryptocurrency investment products seeking mainstream adoption.

Regulators are specifically soliciting public input on whether the LTC-backed trust structure adequately prevents market manipulation. "The Commission seeks comment on whether the proposal raises any novel concerns not previously contemplated," the agency stated in its filing.

The delay validates earlier predictions by industry analysts like James Seyffart, who anticipated prolonged scrutiny for altcoin ETFs. Litecoin joins Bitcoin and Ethereum in the queue of digital assets awaiting SEC approval for regulated investment vehicles.

Litecoin ETF Decision Looms as Traders Weigh Bullish Momentum Against Resistance

Litecoin faces a critical juncture as the SEC’s decision on Canary Capital’s ETF application approaches. Analyst James Seyffart notes the absence of a delay so far, suggesting a plausible—though not guaranteed—path to approval. Market sentiment hangs in the balance: an affirmative decision could propel LTC past its $90 resistance, while a deferral may reinforce the current bearish structure.

Technical charts reveal Litecoin struggling at key Fibonacci levels, with short-term bullish momentum contending against broader skepticism. Traders eye the $90 threshold as a litmus test—breaching it would require catalysts stronger than current spot market activity suggests.