TLDR
- Litecoin and HBAR ETFs are nearing approval, with filings almost complete, but delays due to the U.S. government shutdown.
- Analysts say Litecoin and HBAR ETFs are “at the goal line” for approval, pending resolution of the government shutdown.
- Canary Capital’s Litecoin and HBAR ETFs feature a 0.95% fee, higher than Bitcoin ETFs, but typical for niche products.
- The U.S. government shutdown is delaying SEC decisions on pending crypto ETFs, including Litecoin and Hedera products.
Canary Capital’s filings for Litecoin (LTC) and Hedera (HBAR) exchange-traded funds (ETFs) have reportedly reached their final stages, with analysts suggesting approval is imminent. However, the ongoing U.S. government shutdown has created uncertainty, delaying the launch of these funds. The SEC’s approval process remains stalled due to the shutdown, but industry observers are optimistic that these crypto ETFs will be ready for launch once the government reopens.
Final Steps for Litecoin and HBAR ETFs
Canary Capital’s Litecoin and Hedera ETFs have reached a key point in their approval process, with filings completed and final amendments made. The filings included a 0.95% fee and the ticker symbols “LTCC” for Litecoin and “HBR” for Hedera.
According to Bloomberg analysts Eric Balchunas and James Seyffart, these updates are typically the final step before ETFs are approved. However, with the government shutdown still in effect, approval timelines are uncertain, leaving the launch of these products in limbo.
Balchunas expressed confidence in the readiness of these funds, stating that they are “at the goal line.” Despite the shutdown, he and Seyffart both believe that the ETFs are nearing approval. The approval of these ETFs could provide more exposure to Litecoin and Hedera, attracting both institutional and retail investors who are eager to enter the altcoin market.
Delayed Approvals Due to Government Shutdown
The U.S. government shutdown has left many crypto ETFs, including Litecoin and Hedera, awaiting approval. The SEC, which typically handles the approval process for ETFs, has been operating with a skeleton crew since the shutdown began on October 1.
As a result, ETF approvals have been delayed, and there is no clear timeline for when the government will reopen or when the SEC will act on pending applications.
The government shutdown has affected more than just Litecoin and Hedera ETFs. Several other crypto ETF applications are also stalled, and the SEC’s decision-making process has come to a halt. Despite this, industry analysts remain optimistic that once the government reopens, there will be a backlog of crypto ETFs ready for approval.
The Growing Demand for Crypto ETFs
Analysts predict that once approved, the Litecoin and Hedera ETFs will likely trigger a surge in interest for altcoins. Many believe that altcoin ETFs will open up new investment opportunities for retail and institutional investors, who may not be comfortable investing directly in cryptocurrencies. The approval of these ETFs could also pave the way for other altcoins to gain similar products, potentially sparking a broader rally across the market.
However, some analysts note that the higher fees associated with Litecoin and Hedera ETFs at 0.95% may deter some investors. These fees are higher compared to the average fees for spot Bitcoin ETFs, which typically range between 0.15% and 0.25%.
Despite the higher fees, Balchunas notes that this is “pretty normal” for new and niche markets like altcoin ETFs. If these ETFs attract significant investor interest, it could prompt other issuers to launch similar products with lower fees, intensifying competition.
The crypto ETF market continues to evolve, and while the government shutdown has temporarily stalled approvals, analysts believe the demand for such products is strong. Once the SEC resumes its operations, the approval process for these ETFs is expected to move quickly, further solidifying the role of altcoins in the broader investment ecosystem.
