Canary Capital has taken a significant step forward in its pursuit of launching spot exchange-traded funds (ETFs) for Litecoin (LTC) and Hedera (HBAR) by submitting revised S-1 filings to the U.S. Securities and Exchange Commission (SEC). These updated documents, filed on October 7, finalize critical components of both ETF proposals, including fee structures and ticker symbols—LTCC for Litecoin and HBR for Hedera. The filings come amid an ongoing U.S. government shutdown, which has delayed regulatory processes, but the amendments suggest the firm is poised for imminent approval once the SEC resumes full operations.
Each of the proposed ETFs will directly hold its respective digital asset, offering investors direct exposure to Litecoin and Hedera, rather than relying on futures contracts or derivatives. Custodial services will be managed by regulated entities such as BitGo and Coinbase, adding a layer of institutional-grade security. The net asset value (NAV) for both funds will be calculated daily, using pricing data aggregated from multiple cryptocurrency exchanges at approximately 4:00 p.m. ET.
The sponsor fee for each ETF is set at 0.95%. While this figure is notably higher than the typical 0.2% to 0.5% range seen in most spot Bitcoin ETFs, it falls within expected norms for niche or emerging digital asset products. Industry analysts note that higher fees are common for first-of-their-kind offerings, especially those outside the mainstream Bitcoin and Ethereum markets.
The SEC had initially set a deadline to make a decision on the Litecoin ETF, but its ongoing partial shutdown has stalled progress. Nevertheless, the submission of these final amendments indicates that Canary Capital is aligning all necessary components in anticipation of a swift approval once regulatory operations normalize. Bloomberg ETF analyst Eric Balchunas referred to the filings as the “last thing updated before go-time,” underscoring the proximity to approval.
Canary’s journey toward launching these altcoin ETFs began months earlier. The HBAR ETF traces its origin to an initial filing in November 2024, shortly after the firm introduced a private HBAR trust for qualified investors. Likewise, the Litecoin ETF entered the SEC’s review cycle in early 2025. Nasdaq has already filed the required 19b-4 forms to list both ETFs, signaling that infrastructural readiness is in place and institutional partners are prepared.
Analysts see these ETFs as strong contenders in the altcoin ETF space. Litecoin, with its long-standing classification as a commodity and relatively favorable regulatory status, and Hedera, known for its clarity and compliance, are viewed as low-risk entries compared to other digital assets. Market experts estimate the odds of approval to be above 90% once the SEC resumes normal functions.
Canary Capital is strategically positioning itself as a trailblazer in the post-Bitcoin ETF landscape. The firm is also progressing with filings for spot ETFs based on XRP and Solana (SOL), further demonstrating its commitment to expanding investor access to a broader range of digital assets through regulated financial products. With over 90 crypto ETF applications currently pending due to the SEC’s limited activity during the shutdown, Canary stands out by actively advancing its filings and keeping momentum.
If approved, the Litecoin and HBAR ETFs could represent a pivotal moment in the evolution of institutional crypto adoption. These products would provide a gateway for investors seeking exposure to alternative cryptocurrencies, without the operational complexity of managing wallets or navigating unregulated exchanges. More importantly, they would signal a shift in market maturity, where altcoin-based investment vehicles gain regulatory legitimacy and mainstream financial acceptance.
The arrival of these products could also help diversify the digital asset ETF ecosystem, which remains heavily concentrated in Bitcoin and Ethereum. By integrating assets like Litecoin and Hedera into publicly traded funds, Canary is helping to broaden the investment landscape and offering asset managers, pension funds, and retail investors new tools for portfolio diversification.
The timing of these filings is particularly notable, as the broader crypto ETF market is undergoing a transformation. The approval of multiple spot Bitcoin ETFs earlier has opened the door to a new wave of crypto-related financial products. Now, with market participants and regulators more familiar with the mechanics and risks of digital asset ETFs, the pathway for altcoin funds is becoming increasingly viable.
From a technical standpoint, direct custody of assets like Litecoin and HBAR also represents an evolution in how these financial products are structured. Unlike futures-based funds, spot ETFs provide real-time exposure to the underlying assets, offering both transparency and price accuracy. This model is especially attractive to investors seeking a closer correlation between the ETF’s performance and the actual market value of the cryptocurrencies involved.
Moreover, Canary’s approach could set a precedent for other asset managers looking to develop spot ETFs tied to altcoins. The combination of clear regulatory strategy, institutional custody, and transparent pricing mechanisms creates a blueprint for future entrants into this emerging market segment.
In the context of global crypto adoption, ETFs represent a critical bridge between traditional finance and the decentralized economy. As regulatory clarity improves and investor demand grows, the expansion of ETF offerings into the altcoin space may accelerate, leading to broader market participation and greater liquidity for these assets.
In conclusion, Canary Capital’s amended filings for spot Litecoin and HBAR ETFs mark a significant milestone in the development of regulated crypto investment products. Despite external challenges such as the U.S. government shutdown delaying SEC decisions, the comprehensive nature of the updates—finalized fees, designated tickers, and custody arrangements—suggests the firm is ready to move forward swiftly. Once approved, these ETFs could open new avenues for institutional and retail investors alike, signaling the next chapter in the evolution of cryptocurrency financial instruments.