Karla Barker 
SEC Delays Decision on First Spot Litecoin ETF
The U.S. Securities and Exchange Commission failed to deliver its expected decision on Canary Capital’s spot Litecoin exchange-traded fund application as the deadline passed without action. This delay comes during an ongoing federal government shutdown that has left the SEC operating with minimal staff.
According to FOX News reporter Eleanor Terrett, the regulatory agency is currently “operating on a skeleton crew,” which has significantly slowed its ability to process filings and respond to inquiries. The situation creates uncertainty about what remaining staff are working on and what their current priorities might be.
Technical Deadline Shifts
With the SEC having asked issuers to withdraw their 19b-4 filings, the traditional approval deadlines no longer carry the same weight. Instead, approval now depends primarily on the review and effectiveness of S-1 registration statements. Several ETF issuers have already filed amended S-1 statements to comply with the updated regulatory framework.
It’s unclear whether the current delay stems directly from the government shutdown or represents the SEC’s adjustment to new internal processes following the shift away from the 19b-4 pathway. Canary Capital withdrew its Litecoin ETF application on September 25, though this was likely a procedural move rather than an indication of waning interest.
Analyst Confidence Remains Strong
Despite the immediate uncertainty, market analysts appear largely unfazed by the lack of immediate action. Bloomberg analyst James Seyffart noted, “We are uncertain about what’s happening at this exact moment. That said — we do still think they’ll launch in the near future.”
Fellow ETF analyst Eric Balchunas has characterized the situation as more of a “rain delay,” suggesting that approval is expected once the SEC returns to full operational capacity. This perspective aligns with broader market sentiment that views the ETF launch as inevitable rather than canceled.
Litecoin Price Holds Steady
Litecoin’s price has remained resilient despite the regulatory delays, trading near two-month highs around $122.36. The cryptocurrency has been in a steady uptrend throughout October, driven primarily by ETF expectations. Current trading shows LTC hovering around $117.76 after briefly testing the $121 resistance level.
The slight correction appears to represent routine market consolidation rather than a broader reversal in sentiment. Analysts suggest that if Litecoin can break through the $121 resistance zone, it could potentially trigger further upward movement.
Market participants seem to be taking the delays in stride, perhaps recognizing that government shutdowns create temporary operational challenges rather than fundamental policy shifts. The underlying bullish sentiment around cryptocurrency ETFs appears intact, with many viewing the current situation as a temporary pause rather than a permanent setback.