SEC Delays Litecoin (LTC) ETF Proposal By Canary Capital

The U.S. Securities and Exchange Commission (SEC) has additional delayed making a call on Canary Capital’s proposal for a spot Litecoin (LTC) exchange-traded fund (ETF).

This comes after the company delayed a number of different purposes for spot crypto ETFs final week, together with XRP, Hedera, and Dogecoin however hadn’t completed so for the Canary Litecoin ETF, sparking hopes that the regulator may need totally different plans for this fund.

But on Monday, the official deadline, the regulator introduced the delay and requested for public feedback relating to the proposal’s compliance with regulatory necessities.

“In particular, the Commission seeks comment on whether the proposal to list and trade Shares of the Trust, which would hold LTC, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission,” the company wrote in a submitting.

Canary Capital, which was based by former Valkyrie Funds co-founder Steven McClurg final yr, had submitted preliminary paperwork for the fund in October.

LTC, which stands at a $6.6 billion market cap, is the native cryptocurrency of Litecoin, an open-source blockchain challenge whose code is copied from Bitcoin’s (BTC).

ETF specialists at Bloomberg Intelligence had predicted that the token could be the subsequent to be wrapped up in an ETF amid chatter that Canary Capital had obtained feedback again from the SEC relating to its software again in January.

Issuers have but to obtain the primary main resolution on crypto ETFs made by just lately appointed SEC chair Paul Atkins, who took the place in April.

Atkins’ substitute of former Chair Gary Gensler has been characterised as a “huge variable” by Bloomberg senior ETF analyst Eric Balchunas.