SEC Acknowledges Grayscale’s Litecoin ETF Filing, a Step Forward for Approval – CryptoMode
The SEC has acknowledged Grayscale’s application to convert its Litecoin Trust into a spot Litecoin ETF and is now seeking public comments on the proposal. This marks an important step in the regulatory review process but does not yet signify approval.
The SEC has initiated a 21-day public comment period, allowing investors, industry experts, and financial institutions to submit feedback regarding the potential approval of a Litecoin ETF. The agency will evaluate concerns around market stability, investor protection, and regulatory compliance before making a final decision.
Along with this development, several SOL and XRP spot ETFs are expected to be approved soon by the regulatory body. Many digital asset firms have shown interest in meeting institutional demand for these assets, which could further open the door for more digital assets to enter regulated investment products.
While SEC Commissioner Hester Peirce continues advocating for clearer crypto regulations, the agency’s final ruling remains uncertain. The outcome of this review will help determine whether more altcoins gain access to traditional investment vehicles, shaping the broader crypto ETF industry.
Grayscale recently also filed for an XRP with the SEC in collaboration with the New York Stock Exchange (NYSE), as reported by CryptoMode.
Read more: Grayscale Files to List Spot Solana ETF on NYSE
Litecoin’s Market Response
Litecoin briefly spiked to $109.81 following the SEC’s announcement to open comments on this ETF. However, momentum has since faded, and LTC is now trading around $101 after losing support at the 50-day EMA ($110.75).
If selling pressure continues, the 200-day SMA ($84.97) will be the next major support level. The RSI, at 41.58, signals weakening bullish strength, but Litecoin’s market cap, climbing to just over $8 billion, suggests growing investor interest as investors await the SEC’s final decision.
