Bloomberg's Senior ETF Analyst, Eric Balchunas, observed that the SEC has responded to Litecoin's S-1, signaling the possibility of approving the cryptocurrency's ETF application.
Bloomberg Senior ETF Analyst Eric Balchunas has observed that the Securities and Exchange Commission (SEC) has responded to Litecoin’s S-1 filing, hinting at the possibility of approving the cryptocurrency’s ETF application.
According to Balchunas, this response increases the likelihood of Litecoin being the next coin to have its ETF application approved by the SEC. However, he also noted that the new SEC chair has yet to start, which could introduce significant changes to the approval process.
This observation by Balchunas comes after renowned asset manager James Seyffart highlighted Canary Funds’ filing of an amendment to their Litecoin ETF proposal. Seyffart noted that the amendment doesn’t guarantee approval, but it might indicate that the SEC is reviewing the filing, which could be a step toward approval.
However, Seyffart also clarified that the SEC’s response is just a preliminary step in the approval process. He stated that Litecoin still needs to submit a 19b-4 filing, which would officially start the ETF approval or denial process.
Meanwhile, Foremost journalist Eleanor Terrett has downplayed the SEC’s preliminary response, citing a similar occurrence in the past that has yet to lead to an ETF approval. According to Terrett, Solana ETFs progressed beyond the response stage before the SEC rejected its 19b-4 filing. She adds that the rejection happened under Gary Gensler, whose time in the SEC is due to expire in a few days. A new leadership at the Commission could revisit the filings and potentially influence a different outcome for LTC, XRP, and SOL.
It’s worth noting that Litecoin is one of the first-generation cryptocurrencies, but it has lagged behind other cryptos in that category, such as Bitcoin and Ethereum, in terms of price development. Some market observers have expressed curiosity about the crypto users’ lack of enthusiasm for LTC.
Some believe that the cryptocurrency’s poor performance during the last bull run may have discouraged traders from considering it. Notably, LTC did not reach a new all-time high during the previous bull cycle. In the meantime, Bitcoin and Ethereum quadrupled in value, and many altcoins increased by roughly ten times their initial value.
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