SEC Delays Grayscale's Spot Litecoin ETF: Impact on LTC Price
The U.S. Securities and Exchange Commission (SEC) has prolonged its review period for Grayscale's proposed Litecoin ETF. This delay has caused Litecoin's (LTC) price to dip, reversing earlier gains.
Grayscale Litecoin ETF Faces Extended Review
A recent filing indicates that the SEC will take more time to decide on the application to convert the Grayscale Litecoin Trust into an ETF. Citing Section 19(B)(2) of the Exchange Act, the SEC has justified the extension.
Grayscale initially filed for a Litecoin ETF in January, but the SEC has been cautious. Previous delays occurred in March and May.
The latest memo pushes the decision deadline by 60 days, setting October 10 as the new target date. The SEC's filing stated that the extension allows sufficient time to thoroughly assess the proposed rule change and related issues.
“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.
Following the announcement, Litecoin's price decreased by nearly 2%. According to CoinMarketCap data, Litecoin is currently trading at $107.81, a 7.82% drop over the past week.
Besides Grayscale, the SEC has also delayed Canary’s Litecoin ETF application. Despite these setbacks, Bloomberg analysts James Seyffart and Eric Balchunas estimate a 90% chance of SEC approval for a Litecoin ETF in October.
Several crypto ETF filings, including those for Solana and Litecoin, are competing for SEC approval. Eric Balchunas noted that at least 72 crypto-related ETF filings, spanning from XRP to Dogecoin and smaller cryptocurrencies, are under SEC consideration.
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