SEC Responds to Litecoin ETF Utility as Market Eyes Approval

• Eric Balchunas notes that the SEC responded to the Litecoin S-1.
• The SEC response suggests {that a} potential Litecoin ETF may very well be on the best way.
• Historical past exhibits that the SEC's response doesn’t assure approval of the Litecoin ETF.

Eric Balchunas, Senior ETF Analyst at Bloomberg, famous that the SEC responded to Litecoin's S-1, signaling the potential of approving the cryptocurrency's ETF utility. Balchunas believes this response makes it extra doubtless that Litecoin would be the subsequent coin to have an permitted ETF utility.

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

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

A step ahead, however not a assure

Even with this progress, Seyffart clarified that the SEC's response is simply a preliminary step within the approval course of. He emphasised that Litecoin has but to submit a 19b-4 submitting. It is a key step that will formally begin the ETF approval or rejection course of.

In the meantime, main journalist Eleanor Terrett downplayed the SEC's preliminary response, citing the same case previously that had not but resulted in ETF approval. In line with Terrett, the Solana ETFs handed the response stage earlier than the SEC rejected its 19b-4 submitting. However she famous that the rejection got here beneath Gary Gensler, the SEC chairman, whose time in workplace is up in a number of days. New management on the Fee may evaluate the submitting and have an effect on a distinct final result for LTC, XRP and SOL.

Litecoin value efficiency

Litecoin is likely one of the first-generation cryptocurrencies, nevertheless it lags behind different cryptocurrencies within the class, together with Bitcoin and Ethereum, in value improvement. Market watchers have questioned the reluctance of cryptocurrency customers in direction of LTC.

Associated: Gary Gensler reportedly getting ready to depart SEC position earlier than time period ends

Some consider that the cryptocurrency's poor efficiency throughout the latest bull run turned off merchants. LTC didn’t attain a brand new all-time excessive within the earlier bull cycle. In the meantime, bitcoin and ethereum have quadrupled in worth, and plenty of altcoins have elevated by round ten occasions their unique worth.