The US Securities and Exchange Commission (SEC) failed to meet its October 2 deadline in ruling on Canary Capital’s proposed spot Litecoin (LTC) exchange-traded fund. The agency was unable to justify the delay. This crypto market uncertainty has left investors wondering about when approval would be granted.
Canary filed its 19b-4 application, which it withdrew in September when the SEC instructed issuers to use S-1 filings to register ETFs. This change renders the previous 19b-4 deadlines less relevant but introduces more uncertainty for issuers. According to analysts, even though the move standardizes applications, it lengthens the process and eliminates foreseeable timelines.
In the video, FOX Business reporter Eleanor Terrett described that, under the new system, deadlines related to 19b-4 filings are no longer technically relevant. The players in the market are currently waiting to understand how fast the SEC will be able to review and approve pending applications.
The SEC has already stated that, in the event of a federal government shutdown, it will not process new registration applications. This comprises ETFs, amended filings, and expedited filings. The agency has had to allocate a significant amount of time to processing applications due to its reduced staff.
This leaves the Canary Litecoin ETF and its future altcoin offerings indefinitely held up. The closure has complicated the regulatory processes for crypto ETFs, which are in high demand, and it also frustrates the industry.
Litecoin is trading at a price of $116.51, representing a 2.41% decline over the last 24 hours. CoinMarketCap indicates that the market capitalization has increased by 2.25% on the day, while the trading volume has declined by 13.47% to reach $ 1.15 billion. Litecoin remains ranked among the top 19 cryptocurrencies by market value, despite short-term fluctuations.
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The use of Canary is part of several altcoin ETF proposals currently under consideration. Solana, XRP, Avalanche, Cardano, Chainlink, and Dogecoin ETF applications are also being considered. In the meantime, Bitcoin and Ethereum spot ETFs already have more than 74 billion dollars in assets and are being actively funded by institutions.
Solana ETF approvals were recently re-filed with updated S-1 filings by Fidelity, Franklin Templeton, and Bitwise, with some incorporating staking options. Regulatory reviews may resume at full scale, with analysts arguing that approval of selected ETFs may be granted by mid-October.