Canary Capital's application for Litecoin ETF delayed by SEC for fraud safeguards

From Yahoo Finance: 2025-05-06 18:30:00

Canary Capital’s application to launch a Litecoin ETF has been delayed by the SEC, seeking to ensure fraud safeguards. This is the second delay for Canary, which aims to issue seven alt-coin ETFs. More than 70 alt-coin ETF applications are pending at the SEC, following Trump’s promise of crypto support.

Litecoin is the 21st largest cryptocurrency by market cap, with a stable price over the past year. The delay in approving Canary’s ETF may be due to new SEC chairman Paul Atkins. Experts believe most crypto ETF filings will be approved soon, as Atkins familiarizes himself with the role.

The SEC’s attitude towards risky assets will be tested with VanEck’s application for a BNB coin ETF. BNB is associated with Binance, which faced fraud charges last year. CEO Changpeng Zhao spent time in prison over the allegations. This application will be a key indicator of the SEC’s approach to such assets.

Read more: Canary Capital’s Application for New Litecoin ETF Delayed