The U.S. Securities and Exchange Commission (SEC) was expected to announce whether Canary Capital’s spot Litecoin ETF could begin trading, but no action was taken on the scheduled deadline. The new timeline for approval remains uncertain.
October was slated to be a busy month for crypto ETFs under the SEC’s 19b-4 process, especially following the agency’s approval of generic listing standards that reshaped how crypto ETFs are filed and reviewed. Several delay notices for other ETF applications had already been withdrawn, signaling that the SEC was preparing to issue final decisions without further interruptions.
Market participants and analysts were largely confident that the Litecoin ETF would be approved on schedule. However, the process stalled due to a U.S. federal government shutdown after Congress failed to resolve a budget dispute. According to FOX News reporter Eleanor Terrett, the SEC is currently “operating on a skeleton crew,” slowing its ability to process filings and respond to inquiries.
“It’s unclear what remaining staff is working or what their priorities are at the moment,” Terrett noted in an Oct. 3 post on X, adding that since the SEC has requested issuers to withdraw their 19b-4 filings, the original deadlines are effectively moot. Approval now depends solely on the review and effectiveness of the S-1 registration statements.
Several ETF issuers, including Canary, have filed amended S-1 statements to comply with the updated framework. Canary withdrew its LTC ETF application on Sep. 25. It remains unclear whether the delay is due to the government shutdown or the SEC’s adjustment to new internal procedures following the shift away from the 19b-4 pathway.
Analysts remain optimistic. Bloomberg’s James Seyffart commented, “We are uncertain about what’s happening at this exact moment. That said, we still think they’ll launch in the near future.” ETF analyst Eric Balchunas described the situation as a “rain delay,” suggesting that a decision is expected once the SEC returns to full capacity.
Litecoin Price Maintains Uptrend
Amid ongoing optimism for the ETF launch and a broadly bullish crypto market, Litecoin (LTC) continues to trade above key support levels. At press time, LTC was near $117.76, slightly below the two-month high of $122.36, after a minor 1% dip in the past 24 hours.
Since the start of October, Litecoin has been steadily climbing on ETF hopes. Analysts suggest that today’s slight pullback is likely a routine consolidation rather than the start of a reversal. According to crypto.news, a break above the $121 resistance zone could pave the way for further gains.
