Canary Capital’s bid to launch the first US‑listed spot Litecoin ETF has been thrown into uncertainty after the SEC took no action on Thursday, the original deadline for its decision. The regulator’s silence has left both investors and applicants questioning how the agency will navigate a government shutdown while also adjusting to its newly adopted listing standards for crypto products.
Bloomberg ETF analyst James Seyffart and FOX News reporter Eleanor Terrett noted that the SEC’s updated framework may render the traditional 19b‑4 deadlines irrelevant. Applicants are now being told to withdraw those filings, leaving only the S‑1 registration statement as the crucial document requiring approval.
This shift has raised confusion across the industry, as dozens of crypto ETF applications — spanning Litecoin, Solana, XRP, Avalanche, Cardano, Chainlink, and Dogecoin — wait in regulatory limbo.
Shutdown Complicates the SEC Approvals
The timing of the government shutdown has only deepened the uncertainty. In August, the SEC outlined an “Operation Plan” stating that during a shutdown it would be unable to review or approve applications for new financial products, self‑regulatory rule changes, or registration statements. While the agency has confirmed that it will remain partially operational, it admitted that only a “very limited” number of staff members are available.
Canary Capital’s case is particularly complex. At the SEC’s request, the firm withdrew its 19b‑4 application on September 25, just days before the deadline. That move may explain the regulator’s silence, though it also highlights a broader question: how will pending 19b‑4 filings be treated for other issuers that have yet to withdraw?
Hopes for Streamlined Crypto ETFs
Despite the near‑term setbacks, optimism is rising that the SEC’s new generic listing standards will ultimately accelerate the approval process for crypto ETFs. Under Rule 6c‑11, applications could face a much shorter timeline, cutting the traditional 240‑day wait period significantly.
Bloomberg ETF analyst Eric Balchunas said earlier this week that the odds of approval for some spot altcoin ETFs have now reached “100%” under the revised framework. SEC Chair Paul Atkins also emphasized that the new rules are designed to lower barriers for digital asset products and expand investor choice.
So far, US markets have already embraced spot Bitcoin and Ether ETFs, which together have attracted more than $74 billion in inflows since their debut last year. For Litecoin and other altcoins, the path forward may now depend as much on regulatory housekeeping — and Washington politics — as on market demand.

