Litecoin & HBAR ETFs “At the Goal Line” — Approval Stalled by U.S. Government Shutdown

Litecoin (LTC)

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  • Canary Capital filed final details for its Litecoin (LTCC) and HBAR (HBR) ETFs.
  • Analysts say approval is imminent, but the U.S. shutdown halts SEC activity.
  • The ETFs’ 0.95% fee is higher than Bitcoin ETFs but normal for new asset classes.

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Canary Capital is edging toward regulatory approval for its long-awaited Litecoin (LTC) and Hedera (HBAR) spot ETFs. The asset manager filed final amendments this week, adding a 0.95% management fee and official tickers — LTCC for the Litecoin ETF and HBR for the Hedera ETF.

Bloomberg ETF analyst Eric Balchunas described these updates as “typically the last thing updated before go-time,” suggesting approval could be imminent. However, the timing is uncertain. With the U.S. government shut down and the Securities and Exchange Commission (SEC) operating with limited staff, both funds are effectively in limbo.

Analysts See ETFs “At the Goal Line”

Fellow Bloomberg analyst James Seyffart echoed the optimism, noting that the filings appear “pretty finalized.” He added it feels like the Litecoin and HBAR ETFs are at the goal line, pending only official confirmation.

Earlier predictions from Bitfinex analysts suggested that approval of altcoin-based ETFs could ignite a new altcoin rally, as the products would make these assets more accessible to institutional and retail investors alike.

Fees Higher Than Bitcoin ETFs, But Not Unusual

Canary’s proposed 0.95% fee stands out compared to the 0.15–0.25% range typical of spot Bitcoin ETFs. Yet Balchunas said such pricing is normal for niche or first-mover products. He noted that if these ETFs attract strong investor inflows, competing issuers could soon enter the market with lower-cost alternatives.

Shutdown Stalls ETF Momentum

Despite the ongoing government shutdown, ETF issuers continue to file aggressively. More than 250 leveraged ETF filings — including 3x crypto-related products — are reportedly pending. Still, without SEC approval capacity, new launches remain frozen until normal operations resume.

Also Read: Litecoin Eyes Breakout as Institutional Interest Surges

For now, Canary’s Litecoin and Hedera ETFs appear ready — but the green light depends on when Washington gets back to work.

Canary Capital’s ETFs could mark a milestone for altcoin exposure in traditional markets. Yet, as the SEC remains on pause, investors will need patience before these new vehicles hit the market.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.