Spot ETFs for Litecoin and Hedera Near Final Approval
Asset manager Canary Capital appears to be on the brink of launching its long-awaited Litecoin (LTC) and Hedera (HBAR) spot exchange-traded funds (ETFs) after completing key filing updates with the U.S. Securities and Exchange Commission (SEC).
According to analysts, the filings now include final details such as a 0.95% management fee and official ticker symbols — LTCC for Litecoin and HBR for Hedera. ETF expert Eric Balchunas commented that these updates are “typically the last thing before go-time,” indicating that approval could come shortly after government operations resume.
However, the ongoing U.S. government shutdown, which has left the SEC functioning with limited staff, is delaying the official approval process, leaving the ETFs in regulatory limbo.
Analysts See ETFs ‘At the Goal Line’
Bloomberg ETF analysts Eric Balchunas and James Seyffart both suggested that Canary’s filings are essentially finalized, signaling a near-term launch once normal SEC operations resume. Seyffart noted that “Litecoin and HBAR ETFs are at the goal line,” highlighting growing optimism about their approval.
If confirmed, these ETFs would become the first-ever spot funds for Litecoin and Hedera, following the wave of Bitcoin and Ethereum ETF approvals earlier this year.
Higher Fees but Normal for New Crypto Products
While Canary’s 0.95% fee appears higher than the 0.15%–0.25% range typical for Bitcoin ETFs, analysts say the rate is normal for new or niche ETF markets. Balchunas explained that new asset categories often launch with higher costs due to lower initial demand and complexity in management.
Still, he noted that if the Litecoin and HBAR ETFs attract strong inflows, other issuers may enter the market with cheaper competing products, potentially driving fees down over time.
“It’s pricey compared to Bitcoin ETFs, but quite standard for first movers in smaller markets,” Balchunas added.
Altcoin ETFs Could Spark Broader Market Momentum
Crypto analysts believe the approval of altcoin-linked ETFs could trigger a new wave of capital inflows into non-Bitcoin assets. Bitfinex analysts earlier predicted that spot ETFs for alternative cryptocurrencies would expand investor exposure and fuel an altcoin market rally similar to the one seen after Bitcoin ETF approvals.
“The introduction of altcoin ETFs could mark the start of a new institutional phase for the crypto market,” one analyst said.
Government Shutdown Puts ETF Market on Hold
The U.S. government shutdown, which began on October 1, has temporarily halted SEC decision-making on at least 16 pending crypto ETF applications. While the SEC announced it would continue limited operations, most approval deadlines have passed without action, effectively pausing all new fund launches.
The delay has created uncertainty, but analysts remain confident that Litecoin and Hedera ETFs will be approved quickly once the government reopens.
“It’s not a matter of if — but when,” said Seyffart, suggesting that ETF issuers are prepared to move the moment the SEC resumes full activity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.