After punting off applications on XRP and Dogecoin ETF products last week, the US Securities and Exchange Commission has once again dashed hopes of Canary Capital’s Litecoin ETF, delaying its approval.
The deadline for the regulator’s decision was on Monday and experts were hoping for a more positive outcome, but instead of a decision, the SEC asked for public comments regarding the proposal’s compliance with regulatory requirements.
The filing read— the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
Canary Capital had filed the paperwork for the Canary Litecoin ETF in October and even received comments from the SEC in January. However, the regulator under the new leadership of Paul Atkins is yet to take any major decision on crypto ETFs yet.
Litecoin (LTC) is a proof-of-work cryptocurrency and the 25th biggest digital coin by market cap according to coin gecko. It was launched in 2011 by ex-Google employee Charlie Lee and is an open source blockchain project with a code similar to Bitcoin (BTC). Litecoin price has slipped, down 6.5% intraday and trading at $82.11 during the time of filing this report.
