US SEC Delays Launch Of Grayscale’s Spot Litecoin ETF

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.