SEC delays CoinShares Spot Litecoin ETF decision again, citing market risks and fraud concerns; final ruling expected by October 2025.
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on CoinShares’ proposed spot Litecoin (LTC) exchange-traded fund (ETF). This delay is part of a broader pattern of regulatory caution toward cryptocurrency ETFs. The SEC was supposed to decide by May 26, 2025, but has extended the review time, with a new deadline being August 24, 2025. The agency is requesting further comments and counterarguments of the general population so that they can be in line with regulations especially those that avoid fraud and market manipulation.
CoinShares Spot Litecoin ETF Faces Third SEC Delay
CoinShares, a leading crypto asset manager, has filed an ETF based on Litecoin that would provide investors with a regulated means of exposure to LTC without a direct holding. The ETF would follow a Litecoin index and contain exclusively LTC and cash, and not stake or produce yield. The reluctance by the SEC, however, indicates the concerns that are still in place regarding the risks in the market and clarity on regulation. It is the third time the CoinShares LTC ETF application was delayed, as was its XRP ETF application.
In the meantime, other companies such as Canary Capital and Grayscale are also waiting to hear back on the SEC regarding their Litecoin ETF proposals. The SEC procedure includes the review of 19b-4 filings by exchanges such as Nasdaq that initiate a 240-day review process. CoinShares filed with Nasdaq in February 2025, which started the 240-day review period. The SEC could decide by October 2025.
Related Reading: SEC Hits Multiple ETF Filings With Delays, Including Trump’s Truth Social Bitcoin ETF | Live Bitcoin News
Bloomberg analysts James Seyffart and Eric Balchunas put odds of Litecoin ETF approval at 90 percent based on its status as a commodity and futures market. They forecast that approvals might be received as early as Q4 2025. However, some crypto analysts are speculating that October 23, 2025, is the last day CoinShares has to meet.
October 2025 Key for CoinShares Litecoin ETF
Despite the delays, optimism persists. Litecoin’s price has surged 17% recently in last month, reaching over $120, driven by ETF speculation and broader market trends. Polymarket data provides LTC ETFs with an 80% approval probability at the end of the year, which is a little lower than XRP (83%). However, its regulatory record is a little cleaner than that of other altcoins, analysts observe, which increases its chances. The SECs conservative stance has angered investors, as it comes with its careful consideration of more than 70 crypto ETF applications.
Moreover, those delays are spread to other altcoin ETFs, such as Solana and Dogecoin, as a consistent tactic of prolonged reviews. This has led to the question whether this is discouraging innovation or it saves the investors. CoinShares and the crypto community are yet to see more clarifications.
The SEC’s stalling on CoinShares spot Litecoin ETF is reflective of the ongoing discretion against crypto-based investment products by regulators. The SEC’s cautious approach shows its concern about market manipulation and protecting investors. At the same time, Litecoin’s price is rising, and optimism is growing. This situation highlights the tension between innovation and regulation. October 2025 will be a key moment for the Litecoin ETF decision.
