The fund traded on Canary Capital’s Spotlight Coin Exchange after the U.S. Securities and Exchange Commission failed to take any action Thursday, and is in scope after it failed to meet its original deadline for it to make a decision.
The SEC silence has left the crypto community uncertainty about how regulators will function amid the federal shutdown and how its new generic list standards will affect the timelines of dozens of crypto ETF applications awaiting approval.
Bloomberg ETF analyst James Seyfert and Fox News reporter Eleanor Terrett pointed out that the deadline for the old 19B-4 in the Crypto ETF application is no longer relevant as the SEC asked applicants to withdraw them.
But it is another layer of uncertainty surrounding government closures.
In August, the SEC posted an “operation plan” if the government closes, saying it would not “review and approve applications for registration.” This includes new financial products, changes to rules for self-regulatory organizations, and reviewing or accelerating the effectiveness of the registration statement.
It is unclear whether the SEC’s silence over Canary’s spot Litecoin ETF is caused by government closures alone or as a result of a new generic list standard that renders the 19B-4 deadline unrelated.
Canary retracted the 19B-4 last week, complicating the issue
Canary withdraws its 19B-4 application on September 25th at the request of the SEC. This could be a contributor to the SEC, not decided on Thursday. It is unclear how 19B-4 will affect applicants who have not withdrawn its documents.
– litecoin (@litecoin) October 2, 2025
Cointelegraph contacted the SEC and Canary for comment, but did not receive an immediate response.
SEC is still open, but capacity is limited
In light of the government closures on Wednesday, the SEC said it will continue to operate, but it said it will have a “very limited” number of staff available.
The SEC said its electronic data collection, analysis and search (EDGAR) database will continue to work.
Altcoins appears to add to the US $75 billion Spot Crypto ETF market
The market is seeking potential approvals for several new spots Crypto ETFs from LTC and Solana (sol), including XRP (XRP), Avalanche (Avax), Cardano (ADA), ChainLink (Link) and Dogecoin (Doge).
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The approval is currently available to US spot Bitcoin (BTC) and ether (ETH) ETFs, and has attracted $61.3 billion and $13.4 billion inflows since its launch last year.
Despite the set-off, Bloomberg ETF analyst Eric Balknas said Monday that the SEC’s new listing standards hit 100% of the possibility of approval for several Spot Crypto ETFs.
Listing standards are expected to streamline processes under Rule 6C-11, significantly reducing the timeline for approvals that typically take up to 240 days.
SEC Chair Paul Atkins said the new listing standards will reduce barriers to access digital asset products and provide investors with more options.
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