U.S. government shutdown... Uncertainty over approval of Litecoin spot ETF widens

Canary Capital's application for a Litecoin (LTC) spot exchange-traded fund (ETF) has become uncertain. The U.S. Securities and Exchange Commission (SEC) has not taken any action despite missing the initial decision deadline scheduled for Oct. 3 (local time).

Eleanor Terrett, host of CryptoAmerica (former Fox Business reporter), pointed out on the 2nd (local time) on her X, "The U.S. government shutdown could affect the approval schedule for the Litecoin spot ETF," adding, "The SEC is currently operating with minimal staff, and it is not known which matters are being prioritized."

James Seyffart, a Bloomberg ETF analyst, also said, "In principle, the approval of the Litecoin spot ETF should have been decided on that day," and "The SEC appears to be encouraging filings for all products under a new generic listing standard." He added, "The existing deadline could become meaningless, and the government shutdown may be making the situation worse."

Earlier, in the 'Contingency Plan' announced in August, the SEC said that if a government shutdown materializes it would suspend reviews of new financial products, rule changes by self-regulatory organizations, effectiveness reviews of registration statements, and expedited processing.