Canary Capital is moving closer to launching its much-anticipated Litecoin and Hedera exchange-traded funds (ETFs), even as the U.S. Securities and Exchange Commission (SEC) faces delays caused by the ongoing government shutdown.
Key Takeaways
- Canary Capital filed final amendments for its spot Litecoin (LTCC) and Hedera (HBR) ETFs on October 7.
- Each ETF will carry a 0.95% sponsor fee and directly hold the underlying crypto assets.
- Bloomberg analysts call these filings the final step before approval, predicting a strong chance of success once the SEC resumes normal operations.
- The ETFs could pave the way for a new wave of altcoin investment products, expanding access beyond Bitcoin and Ethereum.
What Happened?
Canary Capital has updated its S-1 filings for the Litecoin (LTC) and Hedera (HBAR) spot ETFs, revealing tickers LTCC and HBR. The move completes the last procedural step before approval and signals that both funds are ready to go live as soon as the SEC restarts its full review process.
Despite the delay caused by the shutdown, analysts remain confident that approval for both products is imminent. According to Bloomberg ETF analyst Eric Balchunas, the updated filings are “the final step before launch,” while his colleague James Seyffart said the funds are “at the goal line.”
INTERESTING: Canary just filed S-1 amendment for Litecoin and HBAR spot ETFs and they include the fees (95bps each) and the tickers (LTCC and HBR). which is typically the last thing updated bf go-time. With shutdown tho who knows but these docs look pretty finalized to me. pic.twitter.com/xSahgxzhtl
— Eric Balchunas (@EricBalchunas) October 7, 2025
Final Filings Signal Readiness
The newly amended filings confirm a 0.95% sponsor fee, slightly higher than the 0.2% to 0.5% range seen with spot Bitcoin ETFs. Experts say the increase is justified because niche crypto ETFs often require more complex custody and pricing infrastructure.
Both ETFs will directly hold the underlying digital assets, managed by regulated custodians BitGo and Coinbase. Their net asset value (NAV) will be calculated daily using aggregated price data from multiple exchanges at around 4 p.m. ET.
The filings also finalize Nasdaq’s 19b-4 forms for listing approval, showing that Canary and its exchange partner have completed all required steps under the SEC’s new single-window ETF review process, which shortens approval timelines to 75 days for compliant crypto products.
SEC Shutdown Creates Temporary Pause
The SEC missed its early October deadline for reviewing the Litecoin ETF due to limited staffing under the current government shutdown. Although regulatory actions are on hold, analysts expect a quick turnaround once normal operations resume.
Industry observers estimate a 90% or higher approval probability, pointing to Litecoin’s established commodity classification and Hedera’s regulatory clarity as key advantages. The strong institutional framework surrounding both assets also supports confidence that the ETFs will pass smoothly through the final approval phase.
Canary’s Broader Strategy and Market Impact
The Litecoin and Hedera ETFs mark Canary Capital’s first public spot crypto products, following earlier private trusts offered to accredited investors in late 2024. The company has also submitted filings for XRP and Solana ETFs, signaling its intention to lead the emerging altcoin ETF market.
If approved, these funds could represent a $1 billion milestone in managed digital assets, positioning Canary as a key player in the next phase of institutional crypto adoption. Market analysts view this as a natural expansion following the success of Bitcoin ETFs, giving investors a path to diversify into other blockchain networks with regulatory oversight.
The broader ETF market now includes over 90 pending crypto fund proposals, most awaiting action as the SEC remains partially inactive. Canary’s readiness and rapid filing updates, however, highlight the growing competition among asset managers to secure the first-mover advantage in non-Bitcoin crypto ETFs.
CoinLaw’s Takeaway
In my experience watching ETF development unfold, Canary Capital’s timing could not be better. By preparing everything during the shutdown, they will be first in line when the SEC switches the lights back on. I find it especially interesting that they are focusing on altcoins like Litecoin and Hedera, which have clearer legal status than many others. This could make them a safer bet for traditional investors dipping their toes into crypto.
If these ETFs are approved, it might mark the start of a new chapter where regulated altcoin exposure becomes mainstream. For investors, this means more ways to participate in crypto’s growth without directly handling the tokens themselves.
