US SEC Remains Silent on Canary Litecoin ETF During Government Shutdown

The Canary Capital’s proposed spot Litecoin ETF remains in limbo as the US SEC did not take any action on the Thursday deadline to announce its decision. This silence from the SEC adds to the uncertainty faced by the cryptocurrency community in light of a government shutdown and new generic listing standards.

Uncertain Times for Crypto ETFs

Notable analysts like Bloomberg’s James Seyffart and FOX News’ Eleanor Terrett mentioned that the previous 19b-4 deadlines for crypto ETF submissions may no longer hold relevance as the SEC has advised applicants to withdraw them, leaving only the S-1 registration statement needing approval.

Canary Litecoin ETF Source: Eleanor Terrett

Aftermath of the Withdrawal

Canary recently pulled its 19b-4 application at SEC’s request on Sept. 25, a move that might explain the SEC’s delay in making a decision. The implications of withdrawing the 19b-4 application on other pending applications remain uncertain.

In connection with the shutdown, the SEC stated it would operate with a skeleton crew, maintaining access to its Electronic Data Gathering, Analysis and Retrieval (EDGAR) database, yet with limited capabilities.

Future of Crypto ETFs

The market anticipates the approval of additional crypto ETFs, including those based on Litecoin (LTC), Solana (SOL), and Ripple (XRP). Following the new listing standards, the SEC appears more inclined to expedite the process, potentially increasing the likelihood of approvals to 100% according to industry experts.