US SEC Delays Launch Of Grayscale’s Spot Litecoin ETF
Highlights
- The US SEC has delayed its decision for the launch of a Grayscale spot Litecoin ETF.
- The SEC has previously extended the period of review for the ETF application.
- Litecoin price has fallen by over 1% following the SEC's decision, erasing daily gains.
The US Securities and Exchange Commission (SEC) is opting for a longer period to issue its decision on a proposal for a Grayscale Litecoin ETF. Amid the delay, Litcoin price has reversed its daily gains, shedding nearly 2% of its value.
Grayscale Litecoin ETF Faces Another ETF Delay
A fresh filing has revealed that the US SEC is designating a longer period to determine whether or not it will approve an application to convert the Grayscale Litecoin Trust to an ETF. The SEC cited section 19(B)(2) of the Exchange Act as legal backing for the extension of time before granting a final decision.
Back in January, Grayscale filed a Litecoin ETF application, but the SEC has taken a cautious stance toward the offering. Since the filing, the SEC delayed its decision in March and followed up with another delay in May.
Per the latest memo, the SEC is delaying its decision on the Grayscale Litecoin ETF by 60 days, designating October 10 as the final decision-making day. However, the document makes no mention of public comments during the extension period after previously seeking comments for the ETF application.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” read the filing.
Litecoin price took a hit in the minutes following the SEC’s delay, with LTC falling by nearly 2%. According to CoinMarketCap data, Litecoin is trading at $107.81, shedding 7.82% over the last week.
Apart from Grayscale, the US SEC has delayed the launch of Canary’s Litecoin ETF application. Despite the string of delays, Bloomberg analysts James Seyffart and Eric Balchunas have pegged the odds of an SEC approval of a Litecoin ETF in October at 90%.
Solana and Litecoin ETF filings have flooded the SEC in a tight race to clinch SEC approval. Balchunas noted that at least 72 crypto-related ETF filings are angling for SEC approval, from XRP to Dogecoin and other smaller-cap cryptocurrencies.
There are now 72 crypto-related ETFs sitting with the SEC awaiting approval to list or list options. Everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between. Gonna be a wild year. Great roundup from @JSeyff pic.twitter.com/IHTqqxeH35
— Eric Balchunas (@EricBalchunas) April 21, 2025
- Indian Court Declares XRP as Property in WazirX Hack Case
- Ethereum Supercycle Strengthens as SharpLink Gaming Withdraws $78.3M in ETH
- Trump Tariffs: Secretary Bessent Declares ‘Fantastic’ Trump–Xi Talks, Bitcoin Breaks $113,000
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
