The deadline for ETF applications approval for Litecoin is May 5: the chances of approval are 79%.

The Securities and Exchange Commission of the USA (SEC) must make a decision on the creation of a spot exchange fund (ETF) based on Litecoin LTCUSD from Canary Capital on May fifth.

Market participants are becoming increasingly optimistic. The probability of approval has peaked on Polymarket since mid-March.

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Will the SEC approve an ETF for Litecoin

Earlier in January, Nasdaq submitted a proposal to amend the rules (Form 19b-4) for the listing and trading of shares of the Canary Litecoin ETF. The proposal was published for public comment in the Federal Register on February 4. This initiated an initial 45-day review period that ended on March 21.

However, the SEC has decided to extend this period by another 45 days, setting May 5 as the new deadline.

“Accordingly, the Commission, in accordance with Section 19(b)(2) of the Act, designates May 5, 2025, as the date by which the Commission must either approve or reject or commence procedures to determine the possibility of rejecting the proposed rule change (Файл No SR-NASDAQ-2025-005),” the statement said.

The regulator has taken similar steps regarding other cryptocurrency ETF applications. On April 29, the SEC postponed its decision on the spot ETF for XRP XRPUSD from Franklin Templeton until June 17, and Bitwise’s proposal for Dogecoin DOGEUSD until June 15. The Ethereum staking ETF ETHUSD from Grayscale also faced the same fate.

What do crypto enthusiasts think

The SEC’s decision not to postpone the consideration of the Litecoin ETF beyond the 90-day period has attracted significant attention from the community. Bloomberg analyst James Seyffart noted this in a post on social media X (previously “Twitter”).

“The SEC has taken the lead and postponed many applications, but not this one,” wrote Seyffart.

Despite this, he noted that while Litecoin may receive approval sooner, a delay is still more likely.

“If any asset has a chance for early approval, it is Litecoin, in my opinion. Personally, I believe that a delay is more likely, but it is definitely worth watching,” he added.

On the Polymarket prediction platform, the chances of approval have risen to 79%, the highest level since mid-March. Additionally, the chances of approval have increased to 49% by July.

A decision in favor of the ETF could pave the way for broader adoption of Litecoin, which is often viewed as a lighter and faster alternative to Bitcoin. Conversely, a rejection or further delay could signal ongoing regulatory indecision in the crypto space.

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