The U.S. Securities and Exchange Commission (SEC) may decide on Canary Capital’s proposed Litecoin ETF as early as May 5, stirring market speculation about a rare early approval.

Unlike many crypto ETF applications that faced multiple delays, Canary Capital’s filing has not been postponed, fueling hope that the SEC might take a different stance on Litecoin. This unusual timeline has caught analysts’ attention.

Bloomberg Analyst Hints at Early Approval Potential

Bloomberg ETF analyst James Seyffart pointed out the odd timing in a May 5 post on X. While the SEC delayed several crypto ETF filings recently, it left Litecoin’s untouched.

“If any asset has a shot at early approval, it’s Litecoin,” Seyffart noted, although he admitted that a delay remains the more probable outcome.

Inside the Filing: What Makes This ETF Different?

Canary Capital submitted its ETF proposal on January 16 via Nasdaq’s 19b-4 process, which allows exchanges to request permission to list new products. The SEC, under Acting Chairman Mark Uyeda, formally acknowledged the application on January 29, kicking off the official review process.

This acknowledgment marked a shift from past SEC behavior, where previous attempts to list ETFs tied to smaller cryptocurrencies like Litecoin met strong resistance.

Market Reacts as Litecoin Holds Steady Above Key Levels

As of May 5, Litecoin trades around $87, up 0.9% over the last day and nearly 10% over the past two weeks. The chart shows a steady rebound from April lows, with LTC ($81.30) trading above the 50-day moving average at $82.87.

The Relative Strength Index (RSI) stands at 56, showing moderate bullish momentum without signalling overbought conditions. Meanwhile, Bollinger Bands are widening, suggesting increased volatility on the horizon.

Key Price Zones and What to Watch

Volume remains steady, pointing to consistent investor interest rather than short-lived hype. The nearest support levels are $82 and $78, while a break above $90 could signal a new bullish trend.

Read Also: XRP ($2.02) Bears Tighten Grip as $2.05 Support Faces Breakdown Threat

Although the SEC’s decision remains uncertain, traders believe an ETF approval could energise Litecoin’s price action. With the May 5 deadline approaching, all eyes are on the regulator’s next move.

The post SEC Could Surprise Market with Early Litecoin ETF Decision by May 5 appeared first on FXcrypto News.