TLDR

Table of Contents

SEC has delayed decision on Canary Capital’s Litecoin ETF, requesting public comments
ETF approval news could boost LTC’s price, but a delay was more likely at press time
Litecoin faces resistance at the $89.3 level (78.6% Fibonacci retracement)
Weak buying pressure and bearish swing structure challenge bullish momentum
Bloomberg analysts previously predicted Litecoin ETF could be next approved after Bitcoin

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Canary Capital’s proposed spot Litecoin (LTC) exchange-traded fund (ETF), requesting public input on the proposal’s regulatory compliance. The announcement came on Monday, May 6, 2025, the official deadline for the decision.

This delay follows a series of postponements for other cryptocurrency ETF applications, including XRP, Hedera, and Dogecoin. However, until the last minute, the Litecoin ETF had not been delayed, which had given some investors hope for a different outcome.

In its filing, the SEC specifically asked for comments on whether the proposal “is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission.”

Canary Capital, founded by former Valkyrie Funds co-founder Steven McClurg in 2024, had submitted its paperwork for the Litecoin ETF in October. The company reportedly received initial comments from the SEC back in January, leading some analysts to view this application favorably.

The @CanaryFunds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5. SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it's Litecoin IMO. Personally think a delay is more likely but def something to watch pic.twitter.com/FilnUcMtUH
— James Seyffart (@JSeyff) May 4, 2025

Market Reaction and Price Analysis

The delay comes at a time when Litecoin shows mixed market signals. Technical analysis reveals a bearish swing structure on the daily chart, despite a bounce from $63 in April. For the structure to turn bullish, LTC would need to breach the $96.5 swing high.

Short-term momentum indicators show some positive signals. The daily Awesome Oscillator highlights upward momentum. However, the Accumulation/Distribution (A/D) indicator shows weak buying pressure over the past month, suggesting limited demand.

Price action indicates Litecoin recently faced rejection at the $89.3 level, which represents the 78.6% Fibonacci retracement level. The cryptocurrency appears to be forming a short-term range between $83.3 and $88.8.

Liquidation Levels and Future Outlook

Liquidation data points to $80.3 and $91.4 as key regions that could attract price movement. The $91.4 level is slightly more feasible as a near-term target based on current positioning.

Bloomberg analysts had previously predicted that Litecoin would be the next cryptocurrency to receive ETF approval after Bitcoin. With a $6.6 billion market cap, Litecoin is the native cryptocurrency of an open-source blockchain project whose code derives from Bitcoin.

ETF experts are watching closely how recently appointed SEC Chair Paul Atkins might handle cryptocurrency fund applications differently than his predecessor, Gary Gensler. Bloomberg senior ETF analyst Eric Balchunas described Atkins’ replacement of Gensler as a “huge variable” in the approval process.

The lack of bullish conviction behind Litecoin suggests that a breakout beyond $90 remains challenging in the near term. Market watchers expect the range-bound price action to continue in the coming days.

Bitcoin’s short-term momentum will likely influence Litecoin’s price movement as well. The current market structure suggests Litecoin may test both the $80.3 and $91.4 price levels before making its next major move.

The SEC’s decision to delay and seek public comments on the Litecoin ETF application indicates the regulatory body is proceeding cautiously with cryptocurrency investment products, maintaining its pattern of extended review periods for digital asset funds.

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