Canary Capital’s Litecoin and HBAR ETFs Near Approval Amid Government Shutdown

Asset manager Canary Capital appears to be on the brink of securing approval for its Litecoin (LTC) and Hedera (HBAR) ETFs after filing final amendments this week. However, the ongoing U.S. government shutdown has cast uncertainty over when the Securities and Exchange Commission (SEC) can formally approve or process new ETF applications.

On Tuesday, Canary filed key updates to both ETFs, adding a 0.95% management fee and assigning tickers “LTCC” for its Litecoin ETF and “HBR” for the HBAR ETF. 

Bloomberg ETF analyst Eric Balchunas said on X that such details are “typically the last thing updated before go-time,” indicating the products are effectively ready for launch once the SEC resumes normal operations. He noted that despite the government shutdown leaving the SEC “largely dark,” the filings “look pretty finalized.” 

Fellow Bloomberg analyst James Seyffart echoed this sentiment, saying it “feels like Litecoin and HBAR ETFs are at the goal line here.”

Canary ETF: Higher Fees but Within Normal Range

The proposed 0.95% fees are notably higher than those charged by existing spot Bitcoin ETFs, which average between 0.15% and 0.25%, according to Ledger data. But, Balchunas said such pricing is “pretty normal” for newer or more niche ETF products. “It’s pricey compared to spot BTC, but that’s expected for areas that are new to being ETF-ed,” he explained.

He added that if Canary’s ETFs attract meaningful investor demand, competing issuers may enter the market with lower-cost options to gain an edge. Analysts from Bitfinex earlier predicted that the approval of altcoin-tied ETFs could trigger a broader altcoin rally, as such products would make exposure to alternative digital assets more accessible for institutional and retail investors.

ETF Filings Surge Despite Shutdown

While the government remains shut down, ETF issuers have continued submitting new filings at a record pace. Balchunas and Seyffart noted a wave of proposals for 3x leveraged ETFs, which seek to triple the daily or monthly returns of their underlying assets.

Firms such as Tuttle Capital, GraniteShares, and ProShares have each filed dozens of new leveraged fund applications, including crypto-related ones. Balchunas estimated there are now nearly 250 pending 3x ETF filings, stating that issuers were using a “spaghetti cannon” approach.

The SEC was expected to rule on 16 crypto ETF applications throughout October, following the introduction of new listing standards in September designed to streamline the approval process. However, with the shutdown starting on October 1, progress has halted. The SEC confirmed it continues to operate with a skeleton staff, leaving the timeline for Canary’s ETFs uncertain.