SEC delays decision on whether to greenlight Canary's Litecoin ETF and asks for public comments

The U.S. Securities and Exchange Commission has delayed a proposal from Canary Funds to list and trade a spot Litecoin exchange-traded fund and is asking for public input.

The agency is asking for public comments, according to a filing released on Monday.

"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 agency said.

The agency is weighing dozens of proposals for an array of crypto ETFs. Over the past week, the SEC delayed making a decision on whether to allow the listing and trading of crypto ETFs tracking XRP, Hedera, and Dogecoin.

The SEC is expected to take a friendlier stance to crypto ETFs than in the prior administration. Since President Donald Trump took office in January, the SEC has dropped several lawsuits against crypto firms and has held public crypto roundtables to discuss how to regulate the industry. New SEC Chair Paul Atkins has said he anticipates "huge benefits" from digital assets and plans to work with lawmakers to create a regulatory framework for crypto.

Bloomberg Intelligence ETF analyst James Seyffart said a Litecoin ETF has the best chance for early approval from the SEC, but said a delay was likely, in a post on X. Grayscale, CoinShares, and Canary are vying for a Litecoin ETF, according to The Block data.

"The @CanaryFunds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5," Seyffart said Sunday."SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it's Litecoin IMO."