SEC to Rule on Grayscale’s Litecoin ETF — Could It Boost LTC Price?

• SEC delays decision again on Grayscale’s Litecoin ETF, citing need for deeper regulatory review.
• Litecoin price jumps above $100, but technical signs hint at a possible short-term pullback ahead.

The United States Securities and Exchange Commission (SEC) has again postponed its decision regarding Grayscale’s spot Litecoin exchange-traded fund (ETF) listing request. If approved, the filing proposal would enable Litecoin shares to be publicly traded on the NYSE Arca exchange.

The SEC explained that it needs more time to review whether the filing is compliant with rules for the protection of investors and current market standards.

Source: SEC

The Grayscale’s suggested Litecoin ETF is under review under the Securities Exchange Act of 1934, a common benchmark for financial products. Along with that, the SEC also delayed a ruling on the Grayscale Solana Trust for the same reasons. These delays show a continued exercise of regulatory prudence towards crypto-related investment vehicles.

The commission has started official proceedings as of now to decide whether the rule change requested for both the Litecoin and Solana ETFs should be approved or not. The process involves considering if the proposals fulfill the legal requirements prior to any possible approval. 

SEC Considers In-Kind Redemptions

Along with these delays, the SEC also began a public comment period on BlackRock’s suggested change to its iShares Bitcoin Trust. This suggested change would enable authorized participants to redeem shares of the ETF with Bitcoin rather than cash. This change would replace the prior approval of the cash-only redemption framework. The SEC will review feedback to determine if the amendment is preserving appropriate protections for investors.

The public comment period is concurrent with a similar action taken by BlackRock, which has requested an in-kind amendment for its physically-backed Ethereum ETF. The next actions of the agency presumably will rely on the comments garnered and subsequent internal review.

In the meantime, prediction platform Polymarket puts the likelihood of approval of the Grayscale Litecoin ETF by 31st of December 2025 at 80%. It is possible that the Solana ETF has a slightly greater chance with a put odds of 82%.

Litecoin Surges Past $100 on ETF Buzz

News of the proposals relating to the ETFs caused Litecoin’s price to climb over $100 for the first time since early March. Speculation and wider marketplace indications spurred the currency up by 10% last week. Many believe the hike is due to expectations that the Trump administration might provide support for crypto through executive orders.

Litecoin has formed a clear ascending channel starting from mid-April. Both trendlines with higher highs and higher lows have been respected by price action. The price is currently testing the channel’s upper edge, and that indicates potential resistance. A breakout there might indicate further bullish action if coupled with significant volume.

However, there are signals of consolidation within the area of $105, which might indicate short-term exhaustion. Sellers’ movement into the market is indicated by the red candles on the crest of the channel. In the event of sustained pressure into this zone, LTC might retrace back into the lower boundary of the channel around $90–$92.