The U.S. Securities and Exchange Commission is poised to approve Litecoin and HBAR exchange-traded funds from Canary Capital this week, despite the government shutdown, following 8-A filings submitted on Monday. Bitwise’s Solana ETF application also advances, signaling growing institutional interest in alternative cryptocurrencies beyond Bitcoin and Ethereum.
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Canary Capital files 8-A forms for Litecoin and HBAR ETFs, preparing for a potential launch amid SEC contingency operations during the shutdown.
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Bitwise submits a related application for a Solana Staking ETF, approved for listing by the New York Stock Exchange.
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Market predictions on platforms like Polymarket show an 88% chance of Litecoin ETF approval by year-end, with HBAR at 60-80%.
Discover the latest on Litecoin and HBAR ETF approvals amid U.S. shutdown. Canary Capital and Bitwise push forward—could this boost crypto prices? Stay informed and explore investment opportunities today.
What Are the Latest Developments in Litecoin and HBAR ETF Approvals?
Litecoin ETF approval appears imminent as Canary Capital submitted 8-A filings on Monday for both Litecoin and HBAR funds, positioning them for a potential launch this week despite the ongoing U.S. government shutdown. Bloomberg Intelligence senior ETF analyst Eric Balchunas noted that preparations are underway, joining Bitwise’s Solana filing and Grayscale’s efforts. This move reflects accelerating institutional adoption of altcoins, with the SEC’s contingency plan allowing limited staff to handle emergency approvals like these ETFs.
How Do the Proposed Fees and Structures Compare for These New ETFs?
Canary Capital’s S-1 filing earlier this month outlines a 0.95% management fee for each of the Litecoin (LTCC) and HBAR (HBR) ETFs, which is higher than the fees for spot Bitcoin ETFs currently around 0.2-0.3%. Eric Balchunas from Bloomberg Intelligence explained that such premiums are common for funds entering niche markets like Litecoin and HBAR, where liquidity and scale are still developing. He added that successful inflows would likely prompt issuers to introduce lower-fee competitors, fostering competition and accessibility. The filings emphasize direct exposure to the underlying assets, with Canary aiming to bridge traditional finance and these established cryptocurrencies. For context, Litecoin’s market cap stands at over $7.6 billion, while HBAR’s ecosystem supports enterprise-grade applications, drawing interest from multiple filers including Grayscale, REX-Osprey, and KraneShares. Nasdaq’s prior Form 19b-4 submission for HBAR further streamlines potential listing, with the review extended to November 8 for thorough SEC assessment. These structures prioritize security and transparency, aligning with regulatory standards to protect investors.
Frequently Asked Questions
Will the U.S. Government Shutdown Delay Litecoin ETF Approval in 2025?
The shutdown introduces uncertainty, but the SEC’s contingency plan enables a skeleton staff to process critical filings like ETF approvals. Canary Capital’s 8-A submissions for Litecoin and HBAR, along with Bitwise’s Solana application, indicate active preparations for a this-week launch. Analysts like Eric Balchunas estimate high feasibility, supported by Polymarket’s 88% approval odds by year-end.
What Impact Could HBAR ETF Approval Have on Hedera’s Institutional Adoption?
An HBAR ETF approval would significantly enhance Hedera’s visibility, building on its inclusion in six U.S. filings and events like Hedera’s chief policy officer Nilmini Rubit’s participation in Nasdaq’s Ring the Bell ceremony last week. This reflects the convergence of traditional finance and blockchain tech, potentially driving more enterprise partnerships and staking rewards for investors seeking exposure to Hedera’s high-throughput network.
Key Takeaways
- Institutional Momentum Builds: Canary Capital’s filings for Litecoin and HBAR ETFs, combined with Bitwise’s Solana Staking ETF listing approval on NYSE Arca, highlight surging demand for altcoin products amid regulatory hurdles.
- Market Optimism Persists: Polymarket traders predict 88% odds for Litecoin ETF approval and 60-80% for HBAR by 2025’s end, correlating with Litecoin’s 3.15% daily gain to $102.47 and 8.7% weekly surge.
- Investor Accessibility Improves: These ETFs offer staking options for Solana and direct asset exposure for Litecoin and HBAR, lowering barriers for retail and institutional participation in crypto markets.
Conclusion
The recent 8-A filings by Canary Capital for Litecoin ETF approval and HBAR funds, alongside Bitwise’s advancements in Solana staking, underscore a pivotal moment for alternative cryptocurrency exchange-traded funds. Despite the U.S. government shutdown’s challenges, the SEC’s emergency protocols and expert insights from Bloomberg’s Eric Balchunas suggest approvals could materialize soon, potentially catalyzing price rallies and broader adoption. As institutional players like Grayscale and Nasdaq engage more deeply, investors should monitor these developments closely for opportunities to diversify portfolios with established assets like Litecoin and HBAR, paving the way for crypto’s deeper integration into mainstream finance.
Canary Capital’s proactive filings come at a time when the cryptocurrency market shows resilience, with Litecoin trading at $102.47 after a 3.15% increase in the last 24 hours and an 8.7% rise over the past week, though it dipped 2.3% monthly. This momentum aligns with broader optimism, as HBAR benefits from multiple ETF pursuits and Hedera’s enterprise-focused innovations. The New York Stock Exchange’s approval of Bitwise’s Solana Staking ETF listing marks a key step, enabling potential rewards from Solana’s efficient blockchain while awaiting final SEC nod.
Bitwise CEO Hunter Horsley hinted at an exciting week ahead, emphasizing the firm’s updated S-1 for Solana that incorporates staking to enhance yields for holders. This follows Solana’s appeal due to its high transaction speeds—over 2,000 transactions per second—and low costs, attracting developers and institutions alike. The ETF’s structure would allow investors to earn staking rewards without managing nodes, democratizing access to Solana’s proof-of-stake ecosystem.
Eric Balchunas’ commentary provides valuable context, stating that while fees for these nascent ETFs are elevated, market dynamics will drive reductions as adoption grows. He referenced the Bitcoin ETF launches, where initial fees dropped post-inflows, predicting a similar trajectory for Litecoin and HBAR. Polymarket’s data further bolsters confidence, with traders betting heavily on approvals amid the shutdown’s limited disruptions.
Hedera’s inclusion in diverse filings signals robust institutional interest, supported by its governing council of global enterprises like Google and IBM. The Nasdaq review extension to November 8 ensures comprehensive evaluation, balancing innovation with investor safeguards. Nilmini Rubit’s Nasdaq event participation highlights Hedera’s policy advancements, fostering dialogues between regulators and blockchain leaders.
Overall, these ETF pursuits represent a maturation of the crypto sector, with Litecoin’s silver-to-Bitcoin analogy and HBAR’s scalability positioning them for growth. As the SEC navigates contingencies, the potential launch of these funds could inject fresh capital, stabilizing prices and encouraging long-term holding strategies among diversified investors.
