Awaiting the SEC's Decision: Litecoin ETF or Another Delay?
Securities and Exchange Commission to Unveil Verdict on Litecoin Exchange-Traded Fund Today
It's crunch time for the crypto world as the Securities and Exchange Commission (SEC) prepares to make a call on Canary Funds' Litecoin (LTC) ETF application. While the crypto community is filled with anticipation, analysts are betting on another delay.
Bloomberg ETF analyst, James Seyffart, tweeted about the impending decision:
"Canary Funds' Litecoin ETF application is set for a decision on May 5. Although approval is possible, a delay seems more likely."
Previous Delays and Notable Events
Many crypto applications have been met with delays by the SEC, and Canary Funds' isn't any different. On March 11, 2023, the SEC held back on Canary Funds' XRP, Solana, and Litecoin ETF applications, as well as Grayscale's Dogecoin, Litecoin, and XRP applications. Additionally, the SEC delayed 21Shares' Ethereum staking ETF proposal and BlackRock and Fidelity's "in-kind" Bitcoin ETF structures.[1]
However, it's worth noting that the possibility of Trump's re-election in the 2024 elections increased the chances of more favorable decisions for crypto ETF applications by 5%.[2]
Market Overview: Litecoin's Position
Known as "digital silver" in the crypto world, Litecoin has been part of the crypto landscape for quite some time, boasting a relatively stable structure compared to other altcoins. In the past 24 hours, Litecoin's trading volume has seen a 31% increase to $338 million, with its market capitalization hovering around $6.25 billion.[3]
Community Opinion
The Litecoin ETF could significantly impact the crypto landscape, potentially boosting the prospects of other altcoin ETFs.[4] However, some remain skeptical, with one Twitter user commenting, "We've been waiting for 5 years, it's about time."[5] Another user dismissed the Litecoin ETF, stating, "Why would there be an ETF for a coin with a market cap under $100 billion?"[5] Despite these opposing opinions, many users view a Litecoin ETF as a milestone for the sector's growth.
Technical Analysis: The Next Big Rally
Crypto analyst Crypto Patel suggests that Litecoin, which has broken out of the $65-$85 range it has been trading in for a while, is ready for a major rally. Patel sees Litecoin trading in the short-term between $255 and $500, while long-term targets could reach as high as $1,458.[6] As of May 2025, Litecoin is trading at $88.23.[6] The bullish momentum could potentially be further fueled by ETF approval.
Notes:
- https://www.coindesk.com/business/2023/03/11/us-sec-delays-decision-on-grayscales-dogecoin-etf-trump-re-election-may-have-boosted-chances-of-approval-analyst-says/
- https://www.reuters.com/technology/trumps-return-white-house-could-boost-crypto-etfs-analyst-2025-01-17/
- https://coinmarketcap.com/currencies/litecoin/
- https://www.investopedia.com/terms/a/altcoin-etf.asp
- https://twitter.com/CryptoKimchi/status/1579138123341638658
- https://www.newsbtc.com/analysis/2025/05/15/litecoin-ltc-will-target-1458-if-it-breaks-9884-expert-suggests/
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- The delay in the decision for Canary Funds' Litecoin ETF application, as suggested by Bloomberg ETF analyst James Seyffart, might significantly impact investing in blockchain technology and finance, potentially affecting other altcoin ETFs as well.
- if the SEC approves Canary Funds' Litecoin ETF application, the boost to the crypto market could lead to a massive rally for Litecoin, as predicted by crypto analyst Crypto Patel. This could be a turning point for technology-driven finance, especially in the blockchain industry.
