Canary Capital Advances Litecoin and Hedera ETFs amid Government Shutdown
Canary Capital has submitted updated applications for its Litecoin (LTC) and Hedera (HBAR) spot ETFs. The company filed amended S-1 forms, finalizing tickers and fees. Analysts view this as a important step towards approval.
The ETFs will be listed as LTCC for Litecoin and HBR for Hedera. Both funds will charge a 0.95% sponsor fee, higher than typical Bitcoin ETFs but standard for niche digital assets. The funds will directly hold the underlying tokens, with custody managed by regulated providers like BitGo and Coinbase.
Despite the U.S. government shutdown delaying the SEC’s decision, Canary’s amendments suggest final preparations for potential approval. Bloomberg analyst Eric Balchunas calls these filings “the last step before go-time.”
Analysts predict over 90% approval odds once the SEC resumes operations. Canary’s HBAR ETF was initially filed in November 2024, with a private HBAR trust launched earlier. The Litecoin ETF entered the SEC review in early 2025.
canary Capital is positioning itself as a leader in altcoin ETFs, with additional filings for XRP and Solana spot etfs. If approved, these ETFs could mark a new phase of institutional crypto adoption, offering exposure beyond Bitcoin and Ethereum.
Market observers see Litecoin’s commodity classification and Hedera’s regulatory clarity as favorable factors. With over 90 crypto ETF proposals pending, Canary’s move could set a precedent for the broader ETF landscape.
