#HotTopicDiscussion  SEC May 5 Litecoin ETF Decision Nears: Chance of Approval Reaches 79%

The U.S. Securities and Exchange Commission (SEC) will make a decision on the spot Litecoin

LTCUSD

exchange-traded fund (ETF) on May 5.

Meanwhile, market observers have become increasingly optimistic.

Will the SEC Approve Litecoin ETF?

Litecoin ETF has reportedly filed to list and trade its shares. The proposal was published in the Federal Register for public comment on February 4. This is the first 45-day review period that ends on March 21

However, the SEC opted to extend the deadline by another 45 days, setting May 5 as the new 90-day deadline.

‘Accordingly, the Commission has set May 5, 2025, to decide whether to approve or reject the proposed rule change (File No. SR-NASDAQ-2025-005) pursuant to Section 19(b)(2) of the Act,’ the statement said.

The regulator has taken similar steps for other cryptocurrency ETF applications. On April 29, the SEC postponed its decision on the spot XRP ETF until June 17 and the Dogecoin proposal until June 15. The Ethereum staking ETF suffered the same fate.

Previously, on April 24, the regulator postponed decisions on the Bitcoin and Ethereum ETFs and the Hedera (HBAR) ETF. The new deadlines are June 10 and 11 respectively.

Similarly, the Polkadot (DOT) ETF conversion application has also been postponed. The new decision date is June 11.

‘The SEC acted early and postponed many applications.

Despite this, it was emphasized that Litecoin could be approved earlier, but a delay was the more likely outcome.

‘If any asset has a chance of early approval, it is Litecoin.’

Previously, the analyst estimated that the Litecoin ETF has a 90% chance of approval among all altcoin ETFs. This estimate seems to be in line with market sentiment.

The prediction platform’s approval probabilities have increased to 79%, the highest level since mid-March. In addition, the probability of approval by July has increased to 49%.

A decision in favor of the ETF could pave the way for wider adoption of Litecoin, which is often seen as a lighter, faster alternative to Bitcoin. Conversely, a rejection or further delay could signal continued regulatory hesitancy in the crypto space. With time running out, all eyes are on the SEC’s next move.