The U.S. Securities and Alternate Fee (SEC) has additional delayed making a call on Canary Capital’s proposal for a spot Litecoin (LTC) exchange-traded fund (ETF).
This comes after the company delayed a number of different purposes for spot crypto ETFs final week, together with XRP, Hedera, and Dogecoin however hadn’t carried out so for the Canary Litecoin ETF, sparking hopes that the regulator might need totally different plans for this fund.
However on Monday, the official deadline, the regulator introduced the delay and requested for public feedback relating to the proposal’s compliance with regulatory necessities.
“Particularly, the Fee seeks touch upon whether or not the proposal to record and commerce Shares of the Belief, which might maintain LTC, is designed to forestall fraudulent and manipulative acts and practices or raises any new or novel issues not beforehand contemplated by the Fee,” the company wrote in a submitting.
Canary Capital, which was based by former Valkyrie Funds co-founder Steven McClurg final yr, had submitted preliminary paperwork for the fund in October.
LTC, which stands at a $6.6 billion market cap, is the native cryptocurrency of Litecoin, an open-source blockchain undertaking whose code is copied from Bitcoin’s (BTC).
ETF consultants at Bloomberg Intelligence had predicted that the token could be the subsequent to be wrapped up in an ETF amid chatter that Canary Capital had acquired feedback again from the SEC relating to its software again in January.
Issuers have but to obtain the primary main determination on crypto ETFs made by lately appointed SEC chair Paul Atkins, who took the place in April.
Atkins’ alternative of former Chair Gary Gensler has been characterised as a “big variable” by Bloomberg senior ETF analyst Eric Balchunas.
