Canary Capital Nears Greenlight for $1B Litecoin and Hedera Spot ETFs
Canary Capital has filed to launch two spot crypto ETFs — one for Litecoin (LTC) and one for Hedera (HBAR). The proposed tickers...
Quick overview
- Canary Capital has filed to launch two spot crypto ETFs for Litecoin (LTC) and Hedera (HBAR), with proposed tickers LTCC and HBR.
- Each ETF will have a 0.95% sponsor fee and will hold the actual underlying cryptocurrencies, with custodians BitGo and Coinbase overseeing the tokens.
- Despite a U.S. government shutdown delaying SEC processes, analysts believe approval for the ETFs could be imminent due to strong institutional support.
- If approved, these ETFs may lead to a significant increase in altcoin ETF offerings, expanding investor access beyond Bitcoin and Ethereum.
Canary Capital has filed to launch two spot crypto ETFs — one for Litecoin (LTC) and one for Hedera (HBAR). The proposed tickers are LTCC for the Litecoin ETF and HBR for the Hedera ETF. Updated filings were submitted on October 7.
Each fund has a 0.95% sponsor fee, slightly higher than the 0.2%–0.5% range for spot Bitcoin ETFs. Analysts say this is in line with costs for emerging digital asset products that require more complex custody and valuation infrastructure.
Key points:
- Custodians: BitGo and Coinbase will hold tokens under regulatory oversight.
- NAV Calculation: Daily valuation based on aggregated exchange data at 4 p.m. ET.
- Structure: Both ETFs will hold the actual underlying cryptocurrencies.
SEC Delay Won’t Hinder Approval
The filings come during a U.S. government shutdown, which has slowed down the SEC. The agency missed its deadline for the Litecoin ETF earlier this month, but Canary’s quick amendments suggest they are ready to go once the SEC is back up and running.
Bloomberg ETF analyst Eric Balchunas called the filings “the final step before launch,” saying approval could be imminent. Fellow analyst James Seyffart agreed, saying both products are “at the goal line.”
Canary’s HBAR ETF is from a November 2024 filing, after a private trust version was launched in October for institutional clients. The Nasdaq has already filed 19b-4s for both ETFs, showing strong institutional support and market demand.
The Next Big Thing in Crypto ETFs
If approved, these ETFs will be a big deal for the crypto market. Analysts estimate over 90% chance of approval once the SEC reopens, citing Litecoin’s commodity status and Hedera’s regulatory clarity as big advantages.
Canary is also filing ETFs for XRP and Solana, so they will be the leader of the next wave of institutional crypto adoption.
With over 90 crypto ETFs pending at the SEC, Canary’s Litecoin and Hedera ETFs could be the spark that ignites the altcoin ETF era, giving investors exposure to more than just Bitcoin and Ethereum.
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