The U.S. government shutdown has stalled the Securities and Exchange Commission (SEC)’s decision on the Litecoin ETF’s approval, raising uncertainty about its October 2nd deadline. The SEC is operating with a limited staff due to the shutdown, impacting its ability to review the S-1 form withdrawal required for the proposed fund.
Journalist Eleanor Terrett confirms that the delay stems from the SEC needing to formally approve the S-1 withdrawal. This process allows for a generic listing standard to become active, which effectively renders the original deadline irrelevant.
However, ETF expert James Seyffart believes the Litecoin ETF will ultimately be listed despite the regulatory standstill. He sees this as a postponement rather than a termination of the project.
While market activity remains high with $1.5 billion in daily trading volume, Litecoin’s price continues to diverge from other major cryptocurrencies, failing to reach its historical highs seen in 2017 and 2021. However, analysts believe it has potential for growth, supported by a price floor near $106.
The SEC’s silence on the Litecoin ETF remains a significant point of uncertainty in the market, as investors await a clear decision on its approval.