Crypto ETFs: Will SEC Approve Litecoin & HBAR or Is the Government Shutdown the Real Boss?

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Canary Capital’s Litecoin and HBAR ETFs are now biding their time, as the U.S. government shutdown plays the villain in their drama.

Canary Capital, ever the optimist, inches closer to launching its crypto ETFs for Litecoin and HBAR-despite the small issue of a government shutdown threatening to push everything back. But who’s counting days anyway?

The firm, in an almost dramatic display of determination, filed its final amendments on October 7, bestowing the tickers LTCC for the Litecoin ETF and HBR for the HBAR ETF. Yes, these updates are the final, absolutely final, procedural steps before approval (unless, of course, the SEC gets distracted by the next shiny thing).

Litecoin ETF: Almost There, Except For the Shutdown Drama

The Litecoin ETF is like the lead character in Canary’s current saga. The firm, in a moment of bold optimism, filed its updated S-1 registration statement. This includes a 0.95% sponsor fee and the LTCC ticker. Spoiler alert: the fee is as high as you’d expect from something shiny and new.

INTERESTING: Canary just filed the final S-1 amendment for both Litecoin and HBAR spot ETFs. They’ve included fees (95bps each) and tickers (LTCC and HBR). The stage is almost set… but, oh, the shutdown…

– Eric Balchunas (@EricBalchunas)

The filing, made under the SEC’s new single-window review framework (introduced in September, because the SEC is nothing if not full of surprises), promises a faster 75-day review period. Let’s hope the SEC doesn’t go on vacation during that time.

Sure, the SEC missed its initial October 2 deadline for Litecoin ETF approval-thanks, shutdown-but Nasdaq has already submitted the 19b-4 form to list the product. All systems go, except for that pesky government shutdown thingy.

ETF analysts, in a move of cautious optimism, believe Canary has everything ready to go once the SEC wakes up from its bureaucratic slumber.

The HBAR ETF: From Trust to Mainstream

The HBAR ETF, the underdog in this tale, builds on Canary’s previous institutional-only trust product, launched last year. This public ETF application was filed in February, and, like a determined runner, it keeps moving forward. The amendment confirms a 0.95% sponsor fee (because, why not?) and assigns the ticker HBR. We love a good ticker, don’t we?

My take on the 95bps fee: It’s steep, but for something as niche as this, it’s almost a given. Besides, if there’s interest, others will come in and crush the market with cheaper alternatives.

– Eric Balchunas (@EricBalchunas)

The HBAR ETF’s 240-day review window is set to end on October 29. Can we get a countdown clock? Analysts think Hedera’s compliance with the Securities Act of 1933 will give it an easy path to approval-because why complicate things?

Shutdown Blues: SEC’s Slow Crawl to Approval

The U.S. government shutdown of October 1 means the SEC is running with a skeleton crew. All non-essential regulatory actions, including the much-anticipated crypto ETF approvals, are in limbo. Some of us are still waiting for that latte, but priorities, right?

Canary’s filings show the final pricing and branding steps are locked in-normally the last updates before an ETF gets the green light. Analysts, forever the optimists, think both the Litecoin and HBAR ETFs could launch faster than a caffeine-charged trader once the SEC gets back to work.

The new listing framework was designed to reduce delays, so don’t panic-this is just a temporary setback. The SEC’s next coffee break might just be their last.

ETF Analysts Can’t Help But Be Optimistic

The ETF analysts, led by the ever-breezy Eric Balchunas of Bloomberg, are practically jumping up and down in excitement. The final amendments, they say, are “typically the last thing updated before go-time.” And if Eric’s saying it, who are we to argue?

James Seyffart, another Bloomberg colleague, shares the sentiment and believes the “Litecoin and HBAR ETFs are at the goal line.” The analysts are practically popping the champagne, just waiting for the SEC to get its act together.

The sponsor fee, at 0.95%, is a bit pricier than Bitcoin ETFs (which hover around 0.15% to 0.25%). But higher fees are a hallmark of more specialized ETFs. If these funds do well, you can bet others will flood the market with cheaper alternatives. Because, hey, why not compete?

The Growing Thirst for Altcoin ETFs

Canary’s focus on Litecoin and HBAR shows that crypto fans are thirsty for more than just Bitcoin and Ethereum. In fact, institutional investors are beginning to demand exposure to a wider range of digital assets. This isn’t a phase; it’s a movement.

Approval of these ETFs would be a watershed moment, expanding access to altcoin-focused products in the U.S. market. Earlier predictions by analysts from Bitfinex suggested that the launch of altcoin ETFs could spark a fresh altcoin rally. Nothing says “new investment” like a bunch of excited traders buying up altcoins, right?

Canary is clearly looking to cement its place as a major player in the altcoin ETF space, with future plans for XRP and Solana ETFs. This means that if these ETFs do well, the integration of digital assets into traditional financial markets could speed up. Fingers crossed, right?

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2025-10-08 20:49