The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale's application to create a Litecoin ETF until October 2025. This marks the third delay, with previous holds issued in March and May.
Official SEC Statement
The SEC cited the need for more time under Section 19(B)(2) of the Exchange Act. During this extension, the SEC has not requested additional public comments. Grayscale's application remains under review as part of a broader wave of crypto ETF proposals currently crowding the regulator's docket.
Market Reaction and Analysts
Litecoin's price reacted quickly to the news, slipping nearly 2%, bringing its weekly loss to over 7% and trading around $107.81. This dip reflects broader market uncertainty amid the SEC's slow movement on crypto products.
Current Crypto ETF Situation
The SEC is currently evaluating over 70 crypto-related ETF filings, including proposals for Solana, XRP, Dogecoin, and other altcoins. Competition among issuers is intensifying as they hope to break into the regulated ETF space.
The SEC's continuous delays in decisions regarding crypto ETFs are impacting the market and creating a sense of uncertainty. Several applications remain under review, including those from Grayscale and Canary.
