SEC Delays Grayscale’s LTC ETF Decision, Opens Public Comment Period

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale Investments’ application for a spot Litecoin (LTC) exchange-traded fund (ETF) on NYSE Arca. The regulatory body has initiated a formal review process and is seeking public feedback before making a final determination. This development marks a critical juncture for Litecoin’s integration into traditional financial markets, as the proposed ETF would allow investors to gain exposure to LTC’s price movements without directly holding the cryptocurrency. The SEC’s cautious approach reflects the ongoing regulatory scrutiny surrounding crypto-based financial products. Market analysts suggest this delay could impact short-term price action but may ultimately strengthen institutional confidence in LTC if approved. As of May 2025, the crypto community awaits further developments, with many viewing this as a potential gateway for broader Litecoin adoption in regulated investment vehicles.

SEC Delays Decision on Grayscale’s Proposed Litecoin ETF, Seeks Public Feedback

The U.S. Securities and Exchange Commission has deferred its ruling on Grayscale Investments’ application to launch a spot Litecoin exchange-traded fund on NYSE Arca. The regulatory body has initiated a formal review process, soliciting public input before reaching a final determination.

Grayscale’s proposal would enable traditional investors to gain exposure to Litecoin’s price movements without direct cryptocurrency custody. The trust structure mirrors the firm’s existing Bitcoin product, offering share-based access to the digital asset’s performance.

Market observers view this development as part of the SEC’s cautious approach toward crypto investment vehicles. The delay follows similar regulatory hesitations surrounding spot Bitcoin ETF applications throughout 2023 and 2024.

Ex-SEC Chair Gensler Held Private Pro-Crypto Views, McHenry Claims

Former U.S. Representative Patrick McHenry disclosed that ex-SEC Chair Gary Gensler privately expressed more favorable sentiments toward cryptocurrencies than his regulatory actions suggested. McHenry, following a private meeting, stated Gensler was "not as anti-crypto in private as he appeared in public." The former regulator reportedly acknowledged the potential of digital assets and blockchain technology, drawing from his academic background at MIT, where he taught fintech and explored concepts like crypto airdrops.

Despite this, Gensler’s tenure as SEC Chair from 2021 to 2025 was marked by aggressive enforcement, with over 100 actions against major crypto firms including Coinbase, Binance, and Kraken. The industry widely criticized his approach, which targeted alleged violations of securities laws and fraud.

Litecoin ETF Approval Odds Hit 80%: How Will It Impact LTC Price?

Litecoin’s path to a spot ETF now appears increasingly likely, with Polymarket odds surging to 80%—a near doubling since January. The cryptocurrency’s regulatory clarity as a commodity, unlike peers such as solana or XRP, positions it favorably for approval. Institutional interest is mounting, with firms like Canary Capital reportedly engaging.

Market sentiment reflects the shift. Litecoin, long overshadowed by Bitcoin, is gaining traction as "digital silver" to BTC’s gold. A successful ETF launch could mirror Bitcoin’s post-approval liquidity surge, though LTC’s smaller market cap may amplify volatility.