SEC delays Grayscale’s Litecoin ETF decision to October 2025, dimming approval hopes despite strong inflows.
The US Securities and Exchange Commission (SEC) is choosing to wait for an extended period before deciding on a proposal for a Grayscale Litecoin ETF. The price of Litcoin has reversed its daily gains, losing nearly 2% of its value, amid the delay.
Grayscale Litecoin ETF Experiences Yet Another Delay
According to a recent filing, the US SEC is extending the timeframe for determining whether or not to approve an application to convert the Grayscale Litecoin Trust to an ETF. The SEC justified the extension of time before issuing a definitive decision by referencing section 19(B)(2) of the Exchange Act.
Grayscale applied for a Litecoin ETF in January; however, the Securities and Exchange Commission has cautiously approached the offering. The SEC postponed its decision in March and again in May following the filing.
Per the most recent memo, the SEC is postponing its decision on the Grayscale Litecoin ETF by 60 days, with October 10 being the ultimate decision-making day. Nevertheless, the document fails to address public comments during the extension period, even though it had previously solicited feedback 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.
The price of Litecoin experienced a decline of nearly 2% in the minutes that followed the SEC’s delay. Litecoin is currently trading at $107.81, a 7.82% decrease from the previous week, as CoinMarketCap data indicates.
In addition to Grayscale, the US SEC has postponed the launch of Canary’s Litecoin ETF application. Bloomberg analysts James Seyffart and Eric Balchunas have estimated that the likelihood of an SEC approval of a Litecoin ETF in October is 90%, despite the series of delays.
In a tight competition to secure SEC approval, the SEC has been inundated with Solana and Litecoin ETF filings. Balchunas observed that at least 72 crypto-related ETF filings are vying for SEC approval, including XRP, Dogecoin, and other smaller-cap cryptocurrencies.
