SEC Inaction Leaves Canary Capital’s Litecoin ETF in Limbo Amid Government Shutdown

Canary Capital’s proposed spot Litecoin ETF is now in regulatory limbo after the ￰1￱ and Exchange Commission (SEC) failed to take action on its Thursday ￰2￱ Takeaways: The SEC missed its deadline on Canary’s spot Litecoin ETF, leaving the application in ￰3￱ agency is phasing out 19b-4 filings in favor of S-1s, adding confusion to ETF approval timelines. A possible government shutdown and shifting rules are delaying decisions on several altcoin ETF ￰4￱ silence has added confusion to an already murky situation, as the crypto industry grapples with shifting ETF application procedures and the looming impact of a federal government ￰5￱ Shifts Crypto ETF Filings Toward S-1, Phases Out 19b-4 Process Earlier this year, the SEC urged firms to withdraw their 19b-4 filings, the documents used for exchange rule changes, in favor of relying solely on S-1 registration ￰6￱ complied, pulling its 19b-4 on September ￰7￱ ETF analyst James Seyffart and FOX reporter Eleanor Terrett noted that the traditional deadline tied to 19b-4 filings may now be irrelevant under the SEC’s evolving ￰8￱ the regulatory uncertainty doesn’t end there.

A shutdown of the federal government is complicating matters ￰9￱ the SEC said it will continue limited operations during the shutdown, a contingency plan published in August stated it would halt the review and approval of new financial ￰10￱ includes registration statements and ETF ￰11￱ I understand it, the shutdown could affect the $LTC ETF approval because the @SECGov still needs to sign off on the S-1 and the agency is operating on a skeleton crew. It’s unclear what remaining staff is working/what their priorities are at the ￰12￱ the generic… ￰0￱ — Eleanor Terrett (@EleanorTerrett) October 2, 2025 Whether the agency’s silence on Canary’s Litecoin ETF stems from the withdrawn filing or the shutdown remains ￰13￱ SEC has not provided public comment on the delay.

Canary’s stalled application joins a growing list of altcoin-based ETF proposals seeking to expand the ￰14￱ ETF ￰15￱ Litecoin, other filings include products based on Solana, XRP, Avalanche, Cardano, Chainlink, and ￰16￱ would join the already launched Bitcoin and Ethereum spot ETFs, which have collectively drawn over $74 billion in ￰17￱ the standstill, analysts remain optimistic. Bloomberg’s Eric Balchunas said this week that the SEC’s adoption of new listing standards under Rule 6c-11 may accelerate ￰18￱ Chair Paul Atkins added that these changes will streamline the process and lower barriers for ￰19￱ ETF Filings Signal Institutional Momentum Last week, several top asset managers, including Fidelity, Franklin Templeton, and Bitwise, have submitted updated S-1 filings for spot Solana ETFs, some with staking ￰20￱ analyst Nate Geraci expects the US SEC could approve them by mid-October , calling it a pivotal month for digital asset ￰21￱ filings follow the recent launch of the REX-Osprey Solana Staking ETF on the Cboe BZX Exchange, which drew $12 million in first-day ￰22￱ say Solana is quickly becoming the next altcoin favored by institutions, with strong inflows also reported in Europe-based Solana ￰23￱ and others believe the inclusion of staking language in these filings could pave the way for long-awaited spot Ethereum ETFs with staking capabilities.

Meanwhile, Bitcoin exchange-traded products now hold over 1.47 million BTC , representing around 7% of the total supply, with U. S.-based ETFs dominating the landscape. BlackRock’s IBIT leads with 746,810 BTC, followed by Fidelity’s FBTC at nearly 199,500 BTC, according to data from HODL15Capital.