Canary Litecoin ETF Delayed Due to Government Shutdown, What’s Next?

The U.S. Securities and Exchange Commission (SEC) has missed its final deadline on the Canary Litecoin ETF due to the U.S. government shutdown, raising concerns in the crypto community. Responded to queries from clients and people, a Bloomberg ETF analyst reveals what lies ahead amid “ETF Uptober.”

US SEC Delays Canary Litecoin ETF Approval

The crypto market was to witness the first ETF approval for altcoins under the Securities Exchange Act of 1933, as the final deadline to approve or deny the Canary Litecoin ETF was on October 2.

However, the SEC has missed the final deadline, with the decision now delayed due to the government shutdown. The community has raised concerns about whether the delay can ripple to the SEC’s final decision on XRP, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Hedera (HBAR) ETFs.

He claims the regulator can approve any or all of these whenever. Notably, the SEC’s final decision on Solana (SOL) ETFs is due on October 10, whereas the deadline for XRP and Dogecoin (DOGE) ETFs is next week.

Bloomberg ETF Analyst on Crypto ETFs Amid Government Shutdown

According to Bloomberg ETF analyst James Seyffart, the SEC wants all issuers to file under the Generic Listing Standards. “Which means this deadline date might not matter at all,” he added. The SEC would decide on the Canary Litecoin ETF immediately, as government activities continue normally following the shutdown.

However, James Seyffart is uncertain about what’s happening at this exact moment and if the government shutdown could disrupt pending ETF approvals. He confirmed that S-1 filings still apply, while the SEC asked issuers to withdraw all 19b-4 filings.

LTC Price Jumps 15% in Response to Canary Litecoin ETF

LTC price has surged over 15% in a week, currently trading at $117.92. The 24-hour low and high are $117.40 and $122.46, respectively. However, the trading volume has decreased by 5% in the last 24 hours as the Canary Litecoin ETF gets delayed.

Meanwhile, massive buying activity continues in the derivatives market, according to CoinGlass data. The total LTC futures open interest jumped 4% to $962.89 million in the last 24 hours, rising almost 25% in a week.

LTC futures open interest in 4-hour and 1-hour revealed mixed sentiment, signaling that derivatives trades are turning cautious. 4-hour LTC futures OI on Binance dropped 0.80%, while climbing 0.60% and 0.75% on OKX and Bybit, respectively.