SEC Holds Litecoin ETF Approval Due to Government Shutdown

Highlights:

• SEC delays Canary Litecoin ETF as government shutdown disrupts normal regulatory operations.
• Uncertainty grows for altcoin ETFs, including Solana, XRP, Dogecoin, and Cardano approvals.
• Over 90 crypto ETFs remain pending, with approvals depending on the SEC resuming work.

The U.S. Securities and Exchange Commission (SEC) has missed its final deadline for the Canary Litecoin ETF, citing disruptions from the U.S. government shutdown. This delay has sparked concern across the crypto community.

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Canary’s Litecoin ETF Faces Delay Due to SEC Rules and Shutdown

Earlier this year, the SEC asked companies to drop their 19b-4 filings, which are used for exchange rule changes, and use only S-1 registration statements. Canary followed this advice and withdrew its 19b-4 on September 25. Bloomberg ETF analyst James Seyffart and FOX reporter Eleanor Terrett said the usual 19b-4 deadlines may no longer matter under the SEC’s new rules. The uncertainty continues as the federal government shutdown is making the situation even more complicated.

Lot of questions from clients and people on here because the @CanaryFunds Litecoin filing was technically due today under 19b-4. But as multiple people have reported (including @EleanorTerrett) it looks like SEC wants everyone to file under the new Generic listing standards for… https://t.co/HdmW7IfQjg

— James Seyffart (@JSeyff) October 2, 2025

The SEC said it will keep limited operations during the shutdown. However, an August plan said it would stop reviewing and approving new financial products, including registration statements and ETF filings. It’s unclear if the SEC’s silence on Canary’s Litecoin ETF is due to the withdrawn filing or the government shutdown, as the agency hasn’t commented publicly.

Impact on Other Altcoin ETFs

A Bloomberg ETF analyst shared insights about what could happen during “ETF Uptober.” The crypto market was expecting its first altcoin ETF approval under the Securities Exchange Act of 1933, with the decision originally due on October 2. Now, the SEC’s delay has raised questions about other altcoin ETFs. 

Investors worry the decision on XRP, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Hedera (HBAR) ETFs could also be affected. He says the SEC can approve any or all of these ETFs at any time. The final decision for Solana ETFs is due on October 10, while the deadlines for XRP and Dogecoin ETFs are next week.

Eleanor Terrett noted that the SEC is working with a skeleton crew and cannot respond to most media questions. She added on X that it’s unclear what tasks the remaining staff are handling or what their priorities are.

As I understand it, the shutdown could affect the $LTC ETF approval because the @SECGov still needs to sign off on the S-1 and the agency is operating on a skeleton crew.

It’s unclear what remaining staff is working/what their priorities are at the moment. Since the generic… https://t.co/uD1uO9udtO

— Eleanor Terrett (@EleanorTerrett) October 2, 2025

Instead of regulatory uncertainty, Litecoin’s price rose 15% in a week and is now trading around $118.05. Meanwhile, strong activity continues in the derivatives market. According to CoinGlass, total LTC futures open interest increased 1% in the past 24 hours to $943.89 million, marking nearly a 20% rise over the week.

SEC Halts Approval of Over 90 Crypto ETFs

Over 90 digital asset products are pending, including single-token ETFs and multi-coin strategies. Bloomberg predicts approvals could start with Solana ETFs in October, but only if the SEC resumes normal operations. For now, the timeline depends more on politics than the market. The Trump administration has cut $26 billion in federal funding to Democratic-led states, escalating the partisan fight. The shutdown has also paused scientific research, financial oversight, and many regulatory activities.

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