SEC Delays Crypto ETF Approvals Amid Shutdown; Litecoin ETF Hangs in Balance
The U.S. Securities and Exchange Commission (SEC) is facing delays in processing cryptocurrency ETF applications, including those for Bitcoin and Ethereum spot ETFs, due to a government shutdown. Meanwhile, institutional interest in crypto remains strong, with over $74 billion invested in these ETFs. Several altcoin funds, including proposals for Solana, XRP, and others, are under review.
The SEC has missed its October 2 deadline to decide on Canary Capital's proposed spot Litecoin (LTC) exchange-traded fund (ETF). The regulator has not issued any public comment explaining the delay. Litecoin is currently trading at $116.51, down 2.41% in the last 24 hours, with a market capitalization of $8.9 billion, up 2.25% for the day.
Earlier this year, the SEC asked firms to withdraw their 19b-4 filings for exchange rule changes in favor of S-1 registration statements for ETF approval. Canary Capital withdrew its 19b-4 application for its Litecoin ETF on September 25, following the SEC's instructions. However, the government shutdown has now paused the review process for new financial products like ETFs.
Despite the delays, institutional interest in crypto remains robust. Bitcoin and Ethereum spot ETFs have already drawn over $74 billion in investment, indicating strong institutional interest in crypto. Top asset managers like Fidelity, Franklin Templeton, and Bitwise have submitted updated S-1 filings for spot Solana ETFs, some featuring staking options. Several altcoin funds, including proposals for Solana, XRP, Avalanche, Cardano, Chainlink, and Dogecoin, are also being reviewed by the SEC for potential approval. Analysts expect the SEC could give approval to some of these ETFs by mid-October.
The SEC's processing delays due to the government shutdown have put a hold on the approval of Canary Capital's Litecoin ETF. However, the strong institutional interest in crypto ETFs continues, with over $74 billion invested in Bitcoin and Ethereum spot ETFs. The regulator's review of other altcoin funds remains ongoing, with potential approvals expected by mid-October.
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