A decisive moment has arrived for Litecoin (LTC) holders, as the United States Securities and Exchange Commission (SEC) faces a key deadline for a potential Litecoin spot ETF.
According to Bloomberg ETF analyst James Seyffart, the SEC is expected to decide on Canary Funds’ application for a Litecoin exchange-traded fund (ETF) by today, May 5.
Following the successful launch of Bitcoin and Ethereum ETFs, asset managers have filed dozens of applications for altcoin ETFs.The SEC has, however, delayed making decisions on the filings, creating anticipation in the crypto community.
In late April, the SEC delayed decisions on whether to allow the trading of altcoin spot ETFs, which would give investors exposure to Dogecoin and XRP. The regulator said it would wait until June to decide on the next steps for the Bitwise Dogecoin ETF and the Franklin XRP Fund.
While the SEC has already delayed several filings, the Litecoin application was not included, according to Seyffart, which leaves open the possibility of an early decision.
Bloomberg ETF analysts predict a 90% possibility that the U.S. securities regulator will approve a spot Litecoin ETF before the end of the year.
Bloomberg analyst shares expectations
Given that the Litecoin ETF filing has not yet faced a delay, Bloomberg ETF analyst James Seyffart believes Litecoin may have a chance at early approval, though he personally expects a delay.
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“The Canary Funds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5. SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it’s Litecoin IMO. Personally think a delay is more likely but definitely something to watch,” Seyffart stated, noting the fact that the filing has not been pushed back yet sets it apart from others in the crypto ETF queue.
If approved, the ETF would mark a significant milestone for Litecoin, giving the cryptocurrency increased visibility and potentially broader institutional access, similar to the optimism seen in Bitcoin following its ETF launch.