The SEC has pushed back its decision on the Litecoin ETF again. They are taking their time with Canary Capital’s proposal, which was submitted in October 2024. This delay comes while they’re also reviewing other crypto funds and collecting public feedback on BlackRock’s Bitcoin ETF model.
The SEC’s official reasoning centers on ensuring these investment vehicles won’t harm investors or be susceptible to market manipulation. Even with Paul Atkins now leading the SEC – who many consider more crypto-friendly than previous leadership – they’re still moving cautiously through the regulatory process.
What This Means for Litecoin
According to cryptocurrency YouTuber Marius from the channel 10X by Marius, there’s still strong reason for optimism. He points out that Bloomberg analysts are giving the Litecoin ETF a 90% chance of approval in 2025. The delay simply indicates thorough regulatory scrutiny rather than rejection.
This postponement affects various stakeholders in the Litecoin ecosystem – from long-term investors to institutional players waiting on the sidelines. Major exchanges like Binance and Coinbase are watching developments closely, understanding that an ETF approval could dramatically increase demand for Litecoin.
What Are the Chances of Its Approval?
The news of the delay didn’t cause any dramatic price movements for Litecoin. As Marius explains in his analysis, the short-term effect has been minimal, but the long-term outlook remains bullish if the ETF eventually gets approved.
An approved Litecoin ETF would enhance its legitimacy, similar to what happened with Bitcoin after its ETF approval. This could drive both investment interest and practical adoption for everyday payments and transactions.
The most significant impact would come from making Litecoin accessible to institutional investors who currently face barriers to directly purchasing cryptocurrency. This influx of institutional capital could substantially change Litecoin’s market dynamics.
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As Marius points out on his Youtube channel, the Bitcoin ETF also took time to get approved – and once launched, demand increased significantly. For Litecoin supporters and potential investors, this period requires staying informed while maintaining reasonable expectations about the timeline. With a 90% chance of approval according to analysts, the future still looks promising for those willing to wait through this regulatory process.
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