Canary Capital’s long-awaited Litecoin (LTC) and Hedera (HBAR) exchange-traded funds (ETFs) are almost ready for approval — but a US government shutdown may delay their debut.
ETFs Finalized, Waiting for Approval 🪙
The asset manager recently filed amendments for both ETFs, adding a 0.95% management fee and confirming ticker symbols LTCC (Litecoin) and HBR (HBAR).
Bloomberg ETF analyst Eric Balchunas commented on X that these updates are “typically the last step before go-time.” However, with the US Securities and Exchange Commission (SEC) largely inactive due to the government shutdown, it’s unclear when final approval will arrive.
His colleague James Seyffart agreed, saying it “feels like Litecoin and HBAR ETFs are at the goal line.”
Analysts See Positive Signs 📈
Crypto analysts believe these filings signal strong progress. A prior report from Bitfinex predicted that altcoin ETFs could trigger a new market rally, opening the door for more investors to access digital assets like Litecoin and HBAR.
While Canary’s 0.95% fee seems high compared to Bitcoin ETFs — which average 0.15% to 0.25% — Balchunas noted that higher fees are normal for niche or first-to-market ETFs.
He added that if investor demand grows, other issuers might compete with lower-cost alternatives.
3x Leverage ETFs Flood the Market ⚡
Despite the government shutdown, ETF issuers are still active. Analysts say firms are firing off “spaghetti cannon” filings — submitting dozens at once, especially 3x leverage ETFs.
Companies like Tuttle Capital, GraniteShares, and ProShares have all filed new applications, including funds tied to Bitcoin (BTC) and Ethereum (ETH).
Balchunas estimates that nearly 250 leveraged ETF filings are pending, noting that these products are profitable because “the degens are hungry and fee insensitive — a powerful combo in capitalism.”
Shutdown Leaves Crypto ETFs in Limbo ⏸️
The SEC was expected to decide on 16 crypto ETFs in October, following new listing standards meant to speed up approvals. But with the government shutdown starting October 1, deadlines have passed with no updates.
The SEC is currently operating with a skeleton crew, leaving the entire ETF market in waiting mode.
Final Thoughts 💡
The near-final status of Canary’s Litecoin and HBAR ETFs signals growing momentum for altcoin-based investment products. Once the government reopens, approvals could come quickly — possibly kicking off a new altcoin ETF wave.
Stay tuned for the latest crypto ETF updates at 👉 CryptoDice News
