Canary Litecoin ETF Paused by Government Shutdown
Canary Litecoin ETF filing, which was about to meet the final decision by the Securities and Exchange Commission (SEC) on October 2, 2025, was delayed due to the ongoing U.S. government shutdown. SEC was unable to act because of the limitations on staff during the shutdown.
The Canary Litecoin ETF, filed on October 15th, was acknowledged by the SEC in February 2025, and traders were expecting a fast approval due to the regulatory shift into the Generic Listing Standards (GLS) for crypto ETFs. However, the sudden shutdown has ignited fear in the LTC market, with the price nearly 2% down today.
Beyond Litecoin holders, the entire altcoin market, which used the ETF momentum as a major narrative for the altcoin, now fears that all of the upcoming altcoin ETFs will be delayed. While various analysts predict a breakdown into a bear phase, others are of the opinion that ETF approvals will not have a crucial impact on the upcoming rally.
Litecoin -3.5% Down Today Due to the ETF Decision Delay
With the SEC decision on Canary’s LTC ETF pending indefinitely, Litecoin witnessed a 3.5% dip and a 25% decrease in the 24-hour trading volume. The profit taking that followed the recent surge also contributed to the downtrend.
At present, LTC is trading for $117.47 per coin, a 71.57% decrease from the all-time high of $412.96 it achieved four years ago. Despite the current dip, various traders are optimistic about the continuation of Litecoin’s Uptober rally.
Altcoin Traders in Uncertainty As More ETFs Await Approval This Month
The Litecoin ETF was filed by Canary Capital on October 15th, following the filing of its XRP ETF on October 8th, 2024, which awaits approval on October 24th. Around 16 ETFs have approval deadlines this month, and traders fear a delay on each of them.
The SEC has already delayed decisions on multiple crypto ETFs throughout 2024 and 2025. When the Generic Listing Standards were sanctioned by the SEC, traders expected the approval to fasten, but the unexpected shutdown made it worse. If the delay continues, it will potentially ignite bleeding in the charts, stopping the ongoing altcoin bull run.
Upcoming Crypto Spot ETF Deadlines: October 2025
The next ETF awaiting approval is the Grayscale Litecoin Trust ETF, and if the shutdown continues till October 10th, we will see LTC dropping again. The complete list of ETF filings waiting for approval this October is given below.
| Sl. No | ETFs List | Final Deadline |
|---|---|---|
| 1 | Canary Litecoin ETF | 10/2/25 |
| 2 | Grayscale Litecoin Trust | 10/10/25 |
| 3 | CoinShares Litecoin ETF | 10/23/25 |
| 4 | Grayscale Solana Trust | 10/10/25 |
| 5 | VanEck Solana Trust | 10/16/25 |
| 6 | 21Shares Core Solana ETF | 10/16/25 |
| 7 | Canary Solana ETF | 10/16/25 |
| 8 | Bitwise Solana ETF | 10/16/25 |
| 9 | Grayscale Dogecoin Trust | 10/18/25 |
| 10 | Grayscale XRP Trust | 10/18/25 |
| 11 | 21Shares Core XRP Trust | 10/19/25 |
| 12 | Bitwise XRP ETF | 10/22/25 |
| 13 | Canary XRP ETF | 10/23/25 |
| 14 | Wisdomtree XRP Fund | 10/24/25 |
| 15 | CoinShares XRP ETF | 10/23/25 |
What’s Next For Investors? Broader Impact of the U.S Shutdown on the Crypto Market
With the ongoing shutdown, the U.S. government has introduced significant uncertainty in the crypto market, and traders fear the impact of regulatory delays and the absence of key economic data on the market capitalization. In addition to this, the ETF delays will slow down the institutional inflows, increasing the volatility from retail traders.
However, the shutdown will likely impact the traditional asset economy more than the cryptocurrency industry, forcing traditional investors to shift into cryptocurrencies as potential safe-haven assets. This will definitely increase the value of major currencies like Bitcoin and Ethereum in the long run, but Litecoin’s case is still uncertain.
Crypto & Blockchain Expert