The cryptocurrency market is buzzing with anticipation as the US Securities and Exchange Commission (SEC) prepares to deliver its verdict on Canary Capital's spot Litecoin ETF today (May 5, 2025).

Litecoin, often referred to as the “silver to Bitcoin’s gold,” has long been a stalwart in the crypto space.

The US Securities and Exchange Commission (SEC) is set to deliver its verdict on Canary Capital’s spot Litecoin (LTC) ETF on Friday, May 5.

The SEC’s ruling on the Litecoin ETF has been eagerly awaited by the crypto community, who are hopeful that the move could pave the way for a new wave of altcoin investment products.

Canary Capital’s proposal has uniquely avoided early delays, unlike other cryptocurrency ETF filings, which has sparked cautious optimism among investors.

Discussing the filing, Bloomberg ETF analyst James Seyffart highlighted the unique status of Canary’s proposal, adding that Litecoin is the most likely candidate for early approval.

“The Canary Capital filing for a Litecoin ETF is due for a decision (or likely a delay) on Monday 5/5. SEC went early and delayed a bunch of filings but not this one. If any asset has a chance of early approval it’s Litecoin, in my opinion,” Seyffart said.

“Personally, I think a delay is more likely, but definitely something to watch.”

The SEC had previously postponed decisions on several altcoin ETFs, including Canary’s Litecoin, XRP and Solana filings, as well as Grayscale’s Dogecoin and Litecoin proposals on March 11.

This history of delays had fueled skepticism among some investors, with one X user, Panda, dismissing the ETF’s relevance due to Litecoin’s relatively modest $6.25 billion market cap.

However, others saw approval as a transformative step for altcoin investment products, setting the stage for a new era of institutional participation in the cryptocurrency market.

The precedent set by Bitcoin and Ethereum spot ETFs lends credence to these hopes, and approval could have a significant impact on Litecoin’s liquidity and price stability.

As the SEC prepares to make its decision, the crypto community is divided on the ETF’s prospects, reflecting broader uncertainty about regulatory progress.

Some enthusiasts see approval as a landmark moment for altcoin legitimacy, drawing parallels with Bitcoin’s ETF success and highlighting the growing recognition of cryptocurrencies among mainstream financial institutions.

However, others are jaded by years of SEC delays, which have seen several hopes for a Bitcoin ETF dashed.

One X user, ‘The Chart Guy,’ expressed frustration, saying: “Five years of hope. They’ll probably reject it anyway.”

Seyffart’s February analysis, alongside colleague Eric Balchunas, had pegged Litecoin’s ETF approval odds at 90% for 2025.

This probability, up from 85% pre-Trump re-election, reflects a shifting regulatory landscape and growing optimism toward cryptocurrencies.

Dogecoin, Solana, and XRP trailed with 75%, 70%, and 65% chances, respectively.

The SEC’s cautious approach stems from concerns over market surveillance and investor protections, which the agency is mandated to prioritize.

Despite these concerns, Litecoin’s 12-year history, established infrastructure, and technical analysis make it a “digestible” candidate for regulators seeking to introduce cryptocurrencies to a broader audience.

A delay today would be disappointing but align with the SEC’s conservative track record, which has seen several other ETF proposals get pushed back.

LTC price movement

Technical indicators are flashing bullish signals for Litecoin’s price as the ETF decision approaches.

The altcoin recently broke through a multi-year resistance line, exiting its accumulation range of $65–$85, which could fuel more upside movement.

This optimism is furthered by Litecoin’s 24-hour price increase of 3.0% and a 7-day gain of 1.5%.

Over the past year, Litecoin has climbed 9.2%, demonstrating a steady performance for an altcoin in a volatile market.

Its daily trading volume-to-market cap ratio of 5.61% reflects strong market activity.

With 98.65K holders and a stable reputation, Litecoin is well-positioned for a potential surge.

The Litecoin ETF approval could act as a catalyst, amplifying this upward momentum.

Litecoin price prediction

If the SEC approves the Litecoin ETF, the price could soar drastically due to increased institutional demand.

Analyst Crypto Patel predicts a breakout rally, with short-term price targets of $255–$500, and Long-term projections ranging from $1,000 to $1,458.

“[It] will be interesting to see how quickly we get to new all-time highs if the ETF gets approved on Monday. Could be a quick move to $255–$500,” Patel said.

According to Patel, institutional inflows would likely drive demand, tighten supply and push prices higher.

Even a delay could sustain bullish sentiment, considering Litecoin’s recent technical breakout and the broader optimism surrounding crypto investments.

However, a prolonged delay might dampen enthusiasm, leading to