Canary Capital Nears Launch of Litecoin and HBAR ETFs as SEC Faces Shutdown Delay

TLDR

• Canary Capital readies Litecoin, HBAR ETFs despite SEC shutdown delays.
• Litecoin, Hedera ETFs near launch as Canary files final docs with tickers.
• Crypto ETF rollout continues: LTCC and HBR filings complete, pending SEC.
• SEC delay stalls launch, but Canary’s altcoin ETFs are poised for approval.
• Litecoin and Hedera ETFs set for debut; Canary eyes XRP and SOL next.

Canary Capital is advancing toward launching two new crypto ETF products for Litecoin and Hedera, despite regulatory delays. The firm filed final amendments on October 7, assigning tickers LTCC and HBR with a 0.95% sponsor fee for each. These filings mark the final procedural steps before approval, although the U.S. government shutdown has paused the Securities and Exchange Commission’s review process.

Litecoin ETF Final Details Signal Readiness

Canary Capital finalized key documentation for its Litecoin ETF, submitting the amended S-1 with a proposed 0.95% fee and ticker LTCC. This update completes the standard listing elements required under the SEC’s new crypto ETF listing framework adopted in September 2025. The updated rule replaces the traditional two-step process with a 75-day single-window review.

The SEC missed the initial October 2 deadline for the Litecoin ETF due to ongoing operational constraints related to the shutdown. Despite this, analysts interpret the detailed filings as a sign that Canary is ready to launch once reviews resume. The Nasdaq has already filed the required 19b-4 form, which indicates institutional readiness to list the product.

Under the new framework, crypto ETF products that meet listing requirements no longer require extended SEC deliberations. This significantly reduces delays and is expected to increase the number of approved altcoin ETFs. However, final trading clearance still depends on active SEC staff reviews, which are currently paused.

HBAR ETF Builds on Previous Institutional Offering

Canary’s proposed HBAR ETF represents a transition from its existing private trust version, which launched for institutional clients in October 2024. The public ETF filing for Hedera came in February 2025, with the recent amendment confirming a 0.95% sponsor fee and the HBR ticker. This mirrors the fee structure of the Litecoin ETF and aligns with rates for emerging crypto ETF products.

The 240-day review window for the HBAR ETF ends on October 29, positioning it near the final decision stage once the SEC resumes full operations. Analysts say that regulatory clarity around Hedera gives the HBAR ETF a smoother approval path. Like its Litecoin counterpart, the HBAR fund complies with custody and disclosure rules under the Securities Act of 1933.

Institutional interest continues to grow, supported by Nasdaq’s formal listing request and favorable regulatory momentum. The product would offer broader market access to altcoin exposure beyond Bitcoin and Ethereum. Approval could significantly accelerate the expansion of altcoin-focused crypto ETF offerings in the U.S.

SEC Shutdown Delays but Does Not Derail Launch

The SEC currently operates with minimal staff due to the government shutdown, delaying all non-essential regulatory actions, including crypto ETF approvals. The shutdown has affected the review schedule of both the LTCC and HBR products, although analysts believe these are ready for immediate launch once operations resume.

Canary’s prompt filings show intent to push forward, maintaining momentum within the regulatory framework. The amendments reflect final pricing and branding, which are typically the last updates made before SEC clearance. The streamlined listing process is expected to help reduce long-term delays for similar crypto ETF filings.

Canary Capital is also preparing crypto ETF applications for XRP and Solana, showing its strategic aim to lead in the altcoin ETF space. Analysts forecast a high probability of approval for these products, citing market readiness and regulatory alignment. The expanded product pipeline supports the broader growth of crypto ETF access in traditional financial markets.

 

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