Canary Capital’s Litecoin and HBAR spot ETFs appear to be finalized after fee and ticker amendments, but approval is likely delayed by the US government shutdown; filings show 0.95% fees and tickers LTCC and HBR, suggesting the products are ready once regulators resume normal operations.
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Canary filed final amendments adding 0.95% fees and tickers LTCC and HBR.
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Approval timing is uncertain due to the US government shutdown and limited SEC staffing.
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Fees exceed spot Bitcoin ETF averages (0.15–0.25%), but are typical for niche or newly ETF-ed assets.
Canary Capital Litecoin and HBAR spot ETFs appear finalized but delayed by the US government shutdown — read fees and timing now.
What is the current status of Canary Capital’s Litecoin and HBAR spot ETFs?
Canary Capital Litecoin and HBAR spot ETFs show final amendments adding a 0.95% fee and the tickers LTCC and HBR, signals that filings are near completion. Approval is likely paused while the US government shutdown limits Securities and Exchange Commission operations, leaving precise launch timing unknown.
How were the filings updated and what do the changes mean?
Canary filed amendments on Tuesday that added a management fee of 0.95% and assigned tickers LTCC (Litecoin) and HBR (Hedera). Market analysts, including Bloomberg ETF analysts Eric Balchunas and James Seyffart, view these changes as typical final updates prior to launch.
Those amendments usually indicate readiness to list, but actual approval depends on the SEC resuming normal review processes. Publication and approval timelines are therefore in limbo while staffing and deadlines remain affected by the shutdown.
Source: James Seyffart
Why are the fees for these ETFs higher than spot Bitcoin ETFs?
Spot Bitcoin ETFs generally charge between 0.15% and 0.25% (source: Ledger). Canary’s 0.95% fee is higher, reflecting the premium often applied to newer, niche or less liquid assets when packaged as ETFs.
Analyst Eric Balchunas noted that higher fees are “pretty normal” for emerging ETF product categories. If significant investor flows occur, competitors may introduce lower-fee alternatives to capture market share.
How could the government shutdown affect ETF approvals?
The US government shutdown, effective Oct. 1, reduced SEC staffing and left many pending ETF decisions unaddressed. The SEC indicated it would operate with a skeleton crew, but major approval actions are likely delayed until full operations resume.
16 crypto ETF decisions were anticipated in October; those deadlines now face uncertainty. New listing standards announced in September could accelerate approvals once the SEC can fully engage, but the immediate effect is a pause in final rulings.
Are other issuers still filing ETFs during the shutdown?
Yes. Analysts report numerous filings for leveraged and 3x offerings despite the shutdown. Issuers such as Tuttle Capital, GraniteShares, and ProShares (reportedly active in filings) have submitted batches of applications, some proposing 3x leverage via swaps and options.
Source: Eric Balchunas
What could ETF approvals mean for altcoins like LTC and HBAR?
Analysts from Bitfinex predicted that altcoin-linked ETFs could broaden investor access and spur renewed rallies in the underlying tokens. ETF listings typically lower barriers for institutional and retail buyers, potentially increasing liquidity and visibility for Litecoin and Hedera.
However, actual market impact depends on product uptake, fee levels, and competing issuer strategies. If flows are limited, price effects may be muted compared with the potential outcome of significant inflows.
Source: Eric Balchunas
Frequently Asked Questions
Will the SEC approve the ETFs once the shutdown ends?
Once the SEC returns to full staffing, approvals could proceed if filings remain unchanged. Analysts view Canary’s amendments as a sign of readiness, though final decisions depend on regulatory review and any further comments from the SEC.
How do 3x ETF filings affect the market during a shutdown?
Issuers continue filing 3x ETF applications because such products can be profitable; however, regulatory scrutiny over leverage and investor protection remains a major hurdle and approvals may be slower during reduced operations.
Key Takeaways
- Filings near completion: Canary added 0.95% fees and tickers LTCC and HBR, typical final amendments.
- Approval delayed: The US government shutdown has paused many SEC actions, leaving launch timing uncertain.
- Market impact conditional: ETF listings could boost LTC and HBAR liquidity, but fees and investor flows will shape outcomes.
Conclusion
Canary Capital’s Litecoin and HBAR spot ETFs show the hallmarks of finalized filings, including the 0.95% fee and new tickers, but the US government shutdown has put approvals on hold. Watch for SEC staffing updates and issuer responses; the approval window will likely reopen once regulators resume full operations. COINOTAG will monitor and report updates.
