ETF analyst Eric Balchunas disclosed on October 8 that Canary Capital's Spot Litecoin (LTC) and HBAR fund applications have entered the final stage, only delayed due to the U.S. government shutdown. These two new Crypto Assets products are likely to become the third and fourth approved Spot Crypto Assets ETFs, following Bitcoin and Ethereum.
Litecoin and HBAR ETF have "reached the finish line"
(Source: SEC)
The asset management company Canary Capital recently submitted key final revisions, completing the last preparations for its Litecoin and HBAR exchange-traded funds before listing. According to public documents, Canary has confirmed the stock ticker for the Litecoin ETF as "LTCC" and the stock ticker for the HBAR ETF as "HBR", setting a management fee rate of 0.95% for both.
Bloomberg ETF analyst Eric Balchunas stated on social media platform X on October 8th that these new additions "are typically the last updates before listing," indicating that these ETFs have essentially completed the approval process.
"Due to the U.S. government shutdown, the Securities and Exchange Commission is essentially at a standstill, so the actual approval timeline remains unclear, but these applications seem to be essentially confirmed in my view," Balchunas added.
Another Bloomberg ETF analyst, James Seyffart, shares the same view, believing that these amendments are a positive sign, indicating that "it feels like Litecoin and HBAR ETF have reached the target line."
The U.S. Government Shutdown Hinders ETF Approval Process
October is a key month for cryptocurrency ETFs, as the U.S. Securities and Exchange Commission originally planned to make final decisions on 16 crypto ETFs. Particularly important is the announcement in September by the SEC of new listing standards, which could significantly expedite the approval process for spot crypto ETFs, as regulators no longer need to evaluate each application separately.
However, the U.S. government shutdown that began on October 1 has stalled the entire approval process. Although the SEC stated that it will continue to operate, personnel will be significantly reduced, directly affecting the approval timeline for multiple crypto products, including Litecoin and HBAR ETF.
The fee rate is higher than Bitcoin ETF, but is "quite reasonable"
It is worth noting that the fee rate for these two ETFs from Canary is set at 0.95%, significantly higher than the average level of 0.15% to 0.25% for Spot Bitcoin ETFs. In this regard, Balchunas stated that this fee setting is not surprising.
"The view on the 95 basis point fee is that it is indeed higher compared to Spot BTC, but for the emerging and increasingly niche area of ETFs, this rate is quite normal," he explained. However, he also pointed out that if Litecoin and HBAR ETFs can attract significant amounts of capital and investor interest, other issuers may launch competing products with lower fees.
Shanzhai Coin ETF may trigger a new wave of market enthusiasm
Analysts from the crypto exchange Bitfinex predicted in August that the approval of altcoin-linked ETFs could trigger a new wave of altcoin rallies, as these products would provide traditional investors with a more convenient way to participate in the token market.
At the same time, despite the government shutdown, ETF issuers are actively expanding their product lines. Institutions such as Tuttle Capital, GraniteShares, and ProShares have collectively submitted nearly 250 applications for 3x leveraged ETFs, demonstrating strong market demand for diversified crypto investment tools.
As the U.S. government shutdown crisis gradually moves towards resolution, the final approval of Litecoin and HBAR ETFs may become an important catalyst for the altcoin market, bringing investors new crypto asset allocation options.
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Litecoin and HBAR ETF have completed the approval preparations and may be initiated after the U.S. government reopens.
ETF analyst Eric Balchunas disclosed on October 8 that Canary Capital's Spot Litecoin (LTC) and HBAR fund applications have entered the final stage, only delayed due to the U.S. government shutdown. These two new Crypto Assets products are likely to become the third and fourth approved Spot Crypto Assets ETFs, following Bitcoin and Ethereum.
Litecoin and HBAR ETF have "reached the finish line"
(Source: SEC)
The asset management company Canary Capital recently submitted key final revisions, completing the last preparations for its Litecoin and HBAR exchange-traded funds before listing. According to public documents, Canary has confirmed the stock ticker for the Litecoin ETF as "LTCC" and the stock ticker for the HBAR ETF as "HBR", setting a management fee rate of 0.95% for both.
Bloomberg ETF analyst Eric Balchunas stated on social media platform X on October 8th that these new additions "are typically the last updates before listing," indicating that these ETFs have essentially completed the approval process.
"Due to the U.S. government shutdown, the Securities and Exchange Commission is essentially at a standstill, so the actual approval timeline remains unclear, but these applications seem to be essentially confirmed in my view," Balchunas added.
Another Bloomberg ETF analyst, James Seyffart, shares the same view, believing that these amendments are a positive sign, indicating that "it feels like Litecoin and HBAR ETF have reached the target line."
The U.S. Government Shutdown Hinders ETF Approval Process
October is a key month for cryptocurrency ETFs, as the U.S. Securities and Exchange Commission originally planned to make final decisions on 16 crypto ETFs. Particularly important is the announcement in September by the SEC of new listing standards, which could significantly expedite the approval process for spot crypto ETFs, as regulators no longer need to evaluate each application separately.
However, the U.S. government shutdown that began on October 1 has stalled the entire approval process. Although the SEC stated that it will continue to operate, personnel will be significantly reduced, directly affecting the approval timeline for multiple crypto products, including Litecoin and HBAR ETF.
The fee rate is higher than Bitcoin ETF, but is "quite reasonable"
It is worth noting that the fee rate for these two ETFs from Canary is set at 0.95%, significantly higher than the average level of 0.15% to 0.25% for Spot Bitcoin ETFs. In this regard, Balchunas stated that this fee setting is not surprising.
"The view on the 95 basis point fee is that it is indeed higher compared to Spot BTC, but for the emerging and increasingly niche area of ETFs, this rate is quite normal," he explained. However, he also pointed out that if Litecoin and HBAR ETFs can attract significant amounts of capital and investor interest, other issuers may launch competing products with lower fees.
Shanzhai Coin ETF may trigger a new wave of market enthusiasm
Analysts from the crypto exchange Bitfinex predicted in August that the approval of altcoin-linked ETFs could trigger a new wave of altcoin rallies, as these products would provide traditional investors with a more convenient way to participate in the token market.
At the same time, despite the government shutdown, ETF issuers are actively expanding their product lines. Institutions such as Tuttle Capital, GraniteShares, and ProShares have collectively submitted nearly 250 applications for 3x leveraged ETFs, demonstrating strong market demand for diversified crypto investment tools.
As the U.S. government shutdown crisis gradually moves towards resolution, the final approval of Litecoin and HBAR ETFs may become an important catalyst for the altcoin market, bringing investors new crypto asset allocation options.