- SEC delay on Canary Litecoin ETF sparks uncertainty for Solana, XRP, Dogecoin, ADA, and HBAR.
- Litecoin surges 15% to $117.92 despite ETF ruling pause; derivatives activity shows strong interest.
- Analysts say deadlines may “not matter” as shutdown halts SEC, with approvals likened to a “rain delay.”
The SEC has delayed its decision on the Canary Litecoin ETF after missing the final deadline on October 2. The delay, caused by the ongoing U.S. government shutdown, has raised concerns across the crypto market about pending ETF approvals for Solana, XRP, Dogecoin, Cardano, and Hedera.
ETF Decision Delayed as Shutdown Affects SEC Operations
The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on the Canary Litecoin ETF after missing its final October 2 deadline. The delay is linked to the ongoing federal government shutdown, which has disrupted regulatory activity.
This development raises uncertainty around other pending altcoin ETFs, including proposals for Solana (SOL), XRP, Dogecoin (DOGE), Cardano (ADA), and Hedera (HBAR). The SEC was expected to decide on Solana ETFs by October 10, while XRP and Dogecoin filings face deadlines next week.
Bloomberg ETF analyst James Seyffart explained that the SEC is directing issuers to file under Generic Listing Standards, meaning the usual deadlines may no longer apply. “Which means this deadline date might not matter at all,” Seyffart noted.
Market Reaction and Analyst Commentary
Litecoin’s price surged 15 percent in the past week, trading at $117.92 at press time. The price briefly touched $122.46, close to a two-month high. However, trading volume decreased by 5 percent in the past 24 hours as the ETF decision was postponed.
Derivatives data from CoinGlass showed a 4 percent rise in futures open interest in the last 24 hours, climbing nearly 25 percent over the week. Open interest on Binance dropped slightly, while rising on OKX and Bybit, suggesting cautious positioning among traders.
Seyffart added that S-1 filings remain active, though the SEC asked issuers to withdraw 19b-4 submissions. Fellow analyst Eric Balchunas compared the delay to a “rain delay,” suggesting approvals may resume when normal operations return. Litecoin remains in an uptrend since early October, supported by ETF optimism and strong derivatives activity despite the regulatory pause.
