The Securities and Exchange Commission (SEC) must respond to an ETF’s S-1 filing within up to 240 days.
This means the commission has until June 2025 to decide whether to approve or reject Canary Capital’s proposed Litecoin ETF.
If the SEC approves the ETF, it would be an important milestone for the crypto industry.
This will provide investors with a regulated and convenient way to gain exposure to Litecoin, the 21st cryptocurrency by market capitalization as of October 16, 2024.
Canary Capital LTC ETF S-1. Source: SEC
However, the SEC is known for taking a cautious approach to regulating cryptocurrencies.
Additionally, the SEC’s decision to approve a Litecoin ETF will depend on its assessment of the risks and benefits associated with such a product.
But unlike Ripple, Solana (SOL), and other potential ETF candidates, Litecoin has a clearer regulatory record, which could work in its favor.
Although Litecoin has established itself as a faster alternative to Bitcoin, the SEC has acknowledged that Bitcoin is not a security.
Additionally, upcoming U.S. elections, regardless of their outcome, may impact the SEC’s decisions.
