Crypto News: Canary’s Litecoin and HBAR ETFs Near Approval but U.S. Government Shutdown Delays Launch

Key TakeawaysCanary Capital has filed final amendments for its Litecoin (LTC) and Hedera (HBAR) spot ETFs, signaling readiness for launch.ETF analysts say the filings are “finalized,” but the U.S. government shutdown has delayed SEC action.Both ETFs list 0.95% management fees, higher than Bitcoin ETFs but typical for new niche products.Over 250 leveraged ETF filings are pending as issuers rush to capitalize on the next market wave.Canary Capital appears poised to debut the first spot Litecoin (LTC) and Hedera (HBAR) exchange-traded funds in the U.S., but their official launch is on hold due to the ongoing U.S. government shutdown.On Tuesday, Canary filed amendments for both funds, adding management fees of 0.95% and confirming their tickers — LTCC for Litecoin and HBR for Hedera.Bloomberg ETF analyst Eric Balchunas described the updates as “typically the last thing updated before go-time,” suggesting that approvals were imminent before the shutdown froze regulatory operations. “They look pretty finalized to me,” he said on X.Fellow Bloomberg analyst James Seyffart echoed the view, saying the ETFs are “at the goal line,” and their eventual approval could mark a milestone for altcoin-linked investment products.The shutdown has effectively stalled the U.S. Securities and Exchange Commission (SEC), leaving dozens of ETF applications — including 16 crypto-related ones scheduled for October review — in limbo.Higher Fees, Normal for New ETF CategoriesWhile Canary’s 0.95% fee is steep compared to Bitcoin ETFs (typically 0.15–0.25%), analysts argue it’s reasonable for first-of-its-kind products.“It’s pricey versus spot BTC, but pretty normal to see higher fees in newly ETF-ed or niche sectors,” Balchunas noted.He added that if the LTC and HBAR ETFs attract strong inflows, competitors could enter with cheaper alternatives to capture market share.ETF Filings Surge Despite Market PauseEven with the SEC largely inactive, issuers continue flooding the market with applications — particularly for 3x leveraged ETFs.Tuttle Capital recently filed for 60 new 3x ETFs, while GraniteShares and ProShares have also submitted filings tied to Bitcoin and Ether.Balchunas estimates that over 250 leveraged ETF filings are now pending, calling it a “spaghetti cannon” approach: “They make good money. The degens are hungry and fee-insensitive — a powerful combo in capitalism.”Altcoin ETFs Could Ignite a New Market CycleAnalysts at Bitfinex previously said that approval of altcoin-linked ETFs could trigger a new altcoin rally, expanding investor access beyond Bitcoin and Ethereum.While the SEC’s new listing standards, announced in September, are designed to streamline future approvals, the government shutdown has left all timelines uncertain — keeping both Litecoin and HBAR ETFs waiting on the launchpad.