- Government shutdown stalls SEC approval for Canary’s Litecoin and HBAR ETFs despite completed filings.
- Litecoin Foundation teams with AmericanFortress to launch a privacy-focused wallet entering beta soon.
Canary Capital may be close to launching two new exchange-traded funds (ETFs) tied to Litecoin (LTC) and Hedera (HBAR). The firm filed updated documents this week, but a halt in government operations is holding up the process. The Securities and Exchange Commission (SEC), which oversees ETF approvals, is currently running with limited staff.
Final Details Filed for Litecoin and HBAR ETFs
Canary submitted amendments for both products on Tuesday. The filings set the management fee at 0.95% and revealed the official tickers: “LTCC” for the Litecoin ETF and “HBR” for the HBAR ETF. These are among the last steps before approval is granted.
Canary’s LTCC ‘looking finalized’ #GoTime 😎 https://t.co/tTHwndgli9
— Litecoin Foundation ⚡️ (@LTCFoundation) October 7, 2025
ETF analyst Eric Balchunas said on X that such updates are “typically the last thing updated [before] go-time.” He added that the paperwork “looks pretty finalized to me,” but the shutdown makes the timeline uncertain. Bloomberg’s James Seyffart also commented, saying,
“feels like Litecoin and HBAR ETFs are at the goal line here.”
If approved, these products would offer regulated market access to Litecoin and Hedera, opening them up to more investors through standard trading platforms.
The 0.95% fee is higher than what most Bitcoin spot ETFs charge, which often fall between 0.15% and 0.25%. Still, Balchunas said that pricing is not out of place for ETFs tied to newer or less common assets.
“It’s pricey vs spot BTC, but pretty normal to see higher fees for areas that are new to being ETF-ed and increasingly niche,” he said.
He also noted that if demand is strong, other firms may enter the market with similar products and lower fees. Some analysts believe the launch of altcoin ETFs could drive more activity across smaller crypto markets.
Even with the government shutdown, fund managers continue to submit ETF applications. According to Balchunas and Seyffart, issuers such as Tuttle Capital, GraniteShares, and ProShares have filed dozens of new requests. Many of these are for 3x leveraged ETFs, which aim to deliver triple the returns of the underlying asset.
Balchunas described the trend as a “spaghetti cannon” approach and said, “They make good money.” He explained that such ETFs often use swaps and options to reach their target exposure.
Approval Delays Leave Launch Dates Unclear
The SEC was expected to review multiple crypto ETFs in October, but the shutdown has paused those timelines. The agency confirmed it will continue operating in a reduced capacity. This has left new approvals, including Canary’s Litecoin and HBAR ETFs, waiting without clear guidance.
Meanwhile, Litecoin (LTC) price traded at $116 at press time, down slightly in the past 24 hours and 3% over the past week.
Separately, the Litecoin Foundation announced a partnership with AmericanFortress to develop a privacy-focused wallet. The product, set to enter beta testing in September, aims to address user privacy concerns across the Litecoin network.
