The American Securities and Exchange (SEC) commission has also delayed decision -making on Canary Capital’s proposal in favor of a fund (ETF) of the Litecoin SPOT (LTC).
This occurs after the agency delayed several other applications for Crypto Spot ETF last week, including XRP, Hedera and Dogecoin, but did not do it for the FNB of Canary Litecoin, Sparking hopes that the regulator could have different plans for this fund.
But on Monday, the official deadline, the regulator announced the delay and asked for public comments concerning the compliance of the proposal to the regulatory requirements.
“In particular, the Commission seeks whether the proposal to list and negotiate the actions of the trust, which would hold the LTS, is designed to prevent fraudulent acts and practices or manipulators or raises new or new concerns not previously envisaged by the Commission,” the agency wrote in a file.
Canary Capital, founded by the former co-founder of the Valkyrie funds, Steven McClurg, had submitted the initial documents for the fund in October.
The LTC, which amounts to a market capitalization of $ 6.6 billion, is the native cryptocurrency of Litecoin, an open source blockchain project whose code is copied from Bitcoin’s (BTC).
Bloomberg Intelligence ETF experts predicted that the token would be the next one to be wrapped in an ETF in the midst of a chatter that the Capital Canaria had received comments from the SEC concerning its request in January.
The issuers have not yet received the first major decision on the Crypto ETF taken by the President of the SEC recently appointed Paul Atkins, who took the position in April.
The replacement of Atkins of former president Gary Gensler was characterized as a “enormous variable” by the senior analyst of Bloomberg ETF, Eric Balchunas.
