The United States Securities and Exchange Commission (SEC) missed its expected final deadline to decide on the proposed Litecoin exchange-traded fund (ETF). The delay coincided with the government shutdown, which has left the agency operating with limited staff and reduced capacity.
Eleanor reported on her X post, noting that a spokesperson for the SEC confirmed that the agency cannot respond to many media inquiries at this time. This has added to the uncertainty surrounding the ETF review process, leaving applicants and market participants without clarity. The Canary Litecoin ETF had been viewed as a possible candidate for an immediate decision, but no update was provided.
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
SEC Requests Withdrawal of 19b-4 Filings
Recent procedural adjustments have added complexity to the approval process. Following the adoption of the Generic Listing Standards framework—which eliminates the need for exchange filings—the SEC instructed ETF issuers and their partner exchanges to withdraw their 19b-4 submissions. Canary followed this instruction and withdrew its 19b-4 application on September 25.
This move is considered one of the reasons the SEC did not issue a decision on the October 2 deadline. By directing issuers to rely instead on the Generic Listing Standards framework, the SEC effectively shifted the process away from 19b-4 deadlines. This has left applicants uncertain about when final decisions will be made, since the timeline now depends on S-1 registration statements.
Analysts Point to Unsettled Review Process
Bloomberg ETF analyst James Seyffart explained that the SEC’s adoption of the Generic Listing Standards has changed how crypto ETFs are being reviewed. He noted that this shift means earlier deadline dates tied to 19b-4s may no longer be relevant. While S-1 filings are still required, Seyffart cautioned that the shutdown makes it challenging to determine which filings the SEC is prioritizing.
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
He added that the immediate future of the Canary Litecoin ETF remains unclear. Even if the SEC is prepared to act under the new framework, the reduced staffing levels due to the government shutdown may delay progress until normal operations resume.
The combined effect of the shutdown and the withdrawal of 19b-4 filings has led to a complex situation for ETF issuers. Those that have not withdrawn their 19b-4 documents face questions about how those filings will be treated, while those following the new process must wait for the SEC to review their S-1s.
Evans Kelvin
