LTC Faces Volatility Amid SEC ETF Decision Delay: Key Levels to Watch

Litecoin (LTC) experienced a sharp 6% price drop following the U.S. SEC’s postponement of the Canary Funds Litecoin ETF approval decision. As of May 7, 2025, LTC trades at $82.38 with a 50% surge in daily volumes to $553 million. While short-term bearish pressure dominates, analysts highlight potential support levels and long-term bullish catalysts tied to eventual ETF prospects. This report breaks down the technical and fundamental outlook for LTC amid regulatory uncertainty.

LTC Price Drops 6% Following SEC’s Delay of Litecoin ETF Approval

Litecoin’s price tumbled nearly 6% after the U.S. Securities and Exchange Commission postponed its decision on the Canary Funds Litecoin ETF. The cryptocurrency now trades at $82.38, with daily volumes spiking 50% to $553 million.

Market sentiment remains cautiously optimistic despite the sell-off. Traders anticipate potential support levels to emerge as the ETF approval process extends into regulatory limbo.

SEC Delays Decision on Canary Capital’s Litecoin ETF Proposal

The U.S. Securities and Exchange Commission has deferred its ruling on Canary Capital’s application for a Litecoin exchange-traded fund, mirroring recent delays for similar cryptocurrency-based products. Public commentary on the proposal will remain open until May 26th, with rebuttals due by June 9th.

Market observers maintain optimistic projections for the ETF’s eventual approval despite regulatory postponements. The SEC’s cautious approach follows established patterns seen with pending XRP and Dogecoin fund evaluations.

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

The U.S. Securities and Exchange Commission has extended its review timeline for Canary Funds’ proposed spot Litecoin ETF, signaling continued regulatory caution toward cryptocurrency investment products. The decision delay follows Canary’s October 2024 filing for the Canary Litecoin Trust, which would provide direct exposure to the $6.6 billion market cap cryptocurrency.

Market participants now have an opportunity to weigh in on the proposal’s potential market impact through the SEC’s newly-opened public comment process. The move mirrors the regulator’s measured approach to Bitcoin ETF approvals, suggesting Litecoin products face similar scrutiny despite its established blockchain network derived from Bitcoin’s original codebase.