- Canary Capital is near approval for its Litecoin and Hedera (HBAR) spot ETFs but U.S. government shutdown delays any launch.
- The asset manager has added a 0.95% fee and assigned tickers LTCC (Litecoin) and HBR (Hedera) to the proposed ETFs.
- Analysts view the submission of final details as a sign that approval is close, but the SEC is mostly inactive due to the shutdown.
- Fees for these ETFs are higher than those for spot Bitcoin ETFs, but analysts say this is typical for newer, niche products.
- New listing standards could speed up approvals once the shutdown ends, with dozens of other ETF applications currently awaiting action.
Canary Capital took another step toward launching its Litecoin and Hedera spot exchange-traded funds (ETFs) after submitting key final details to U.S. regulators this week. However, the ongoing U.S. government shutdown places ETF approvals on hold, with no clear timeline on when products can roll out.
The asset manager updated its filings for both ETFs on Tuesday, adding a 0.95% management fee and designating the tickers LTCC for Litecoin (LTC) and HBR for Hedera (HBAR). Analyst Eric Balchunas from Bloomberg stated in an X post that these are typically the last details added before approval.
Balchunas added, “It’s unknown when they’d be approved, but the filings look pretty finalized to me.” James Seyffart, also of Bloomberg, commented that “it feels like Litecoin and HBAR ETFs are at the goal line here,” referring to how close the products are to potential approval.
According to data from Ledger, spot Bitcoin ETFs carry lower average fees—between 0.15% and 0.25%. Balchunas mentioned that while Canary’s 0.95% fee is higher, such pricing is normal for new or niche ETFs. He noted that if these ETFs gain investor interest, competitors may introduce similar products with lower fees.
ETF providers continue submitting new ETF proposals despite the shutdown. Balchunas estimates around 250 leveraged ETF filings are pending, some aiming to offer three times (3x) the daily or monthly returns on their underlying assets. He explained that these leverage funds use swaps and options to achieve higher returns.
The SEC was expected to make decisions on 16 crypto ETFs in October. New listing rules were also announced in September, which could make future approvals faster by removing the need for individual reviews. With the shutdown that began October 1, most deadlines have passed without SEC action, and approvals remain on hold.
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