SEC Responds to Litecoin ETF Submitting as Market Eyes Approval

• Eric Balchunas noticed the SEC has responded to Litecoin’s S-1.
• The SEC’s response suggests a possible Litecoin ETF could possibly be on the way in which.
• Historical past reveals the SEC’s response doesn’t assure an ETF approval for Litecoin.

Bloomberg’s Senior ETF Analyst, Eric Balchunas, noticed that the SEC has responded to Litecoin’s S-1, signaling the potential of approving the cryptocurrency’s ETF software. Balchunas believes this response makes it extra possible that Litecoin would be the subsequent coin to have its ETF software accepted.

Associated: First Spot Litecoin ETF Filed with SEC by Canary Capital

Balchunas noticed this after James Seyffart, a famend asset supervisor, highlighted Canary Funds’ submitting of an modification to their Litecoin ETF proposal. Seyffart acknowledged that the modification doesn’t assure approval. However, he thinks it’d present that the SEC is reviewing the submitting, which could possibly be a step towards approval.

A Step Ahead, However Not a Assure

Even with this progress, Seyffart clarified that the SEC’s response is only a preliminary step within the approval course of. He emphasised that Litecoin nonetheless must submit a 19b-4 submitting. It is a key step that will formally begin the ETF approval or denial course of.

Within the meantime, foremost journalist Eleanor Terrett has downplayed the SEC’s preliminary response, citing the same incidence up to now that has but to result in an ETF approval. Based on Terrett, Solana ETFs went past the response stage earlier than the SEC rejected its 19b-4 submitting. Nevertheless, she famous the rejection occurred underneath Gary Gensler, the SEC chair whose time in workplace is because of expire in a couple of days. A brand new management on the Fee may revisit the filings and affect a special consequence for LTC, XRP, and SOL.

Litecoin’s Value Efficiency

Litecoin is likely one of the first-generation cryptocurrencies however has lagged behind different cryptos in that class, together with Bitcoin and Ethereum, in worth growth. Market observers have questioned the crypto customers’ reluctance in the direction of LTC. 

Associated: Gary Gensler Reportedly Getting ready to Go away SEC Position Earlier than Time period Ends

Some imagine that the cryptocurrency’s poor efficiency over the last bull run turned merchants away. LTC didn’t attain a brand new all-time excessive within the earlier bull cycle. In the meantime, Bitcoin and Ethereum quadrupled in worth, and lots of altcoins elevated by roughly ten instances their preliminary worth.