The SEC is scheduled to make a decision on the proposed Litecoin (LTC) exchange-traded fund (ETF) by Canary Capital on May 5. Market sentiment is optimistic as approval odds have risen to their highest level on Polymarket since mid-March.

In January, Nasdaq submitted the proposed rule change to list and trade shares of the Canary Litecoin ETF. The initial 45-day review period ended on March 21, leading the SEC to extend the deadline by 45 days until May 5.

The SEC has delayed decisions on various cryptocurrency ETF applications, including XRP, Dogecoin, Ethereum, and Bitcoin. However, the Litecoin ETF deadline has not been extended, attracting attention within the community.

Industry experts suggest that while Litecoin may have a chance of early approval, a delay is still likely. The approval odds for the Litecoin ETF have surged to 79% on Polymarket, indicating market confidence in its potential approval. A positive decision could promote broader adoption of Litecoin, while a rejection or further delay might reflect ongoing regulatory caution in the cryptocurrency sector. All eyes are on the SEC's upcoming decision.