Canary's Litecoin and HBAR ETFs Near Approval, But Facing Launch Delays
Canary Capital is on the verge of finalizing its applications for Litecoin and HBAR ETFs, but the ongoing US government shutdown poses a significant hurdle to their launch.
Canary Capital is nearing the completion of its applications for spot ETFs in Litecoin and HBAR, pending final approvals. However, the ongoing government shutdown in the US may hinder their timing for launch.
On Tuesday, the company submitted amendments for its applications, indicating updates that generally suggest readiness. According to analyst Eric Balchunas, the details revised are typically final touches before grants happen.
However, due to the government closure, uncertainties linger regarding approval timelines, leaving these funds in a state of suspense. Balchunas remarked that while the SEC’s operations continue with minimal staff, there’s no clear indication of when the approvals may come through.
Another analyst, James Seyffart, echoed this sentiment, believing that the latest modifications hint at a likely approval soon, asserting that these ETFs are nearing the finish line.
In August, Bitfinex analysts noted that getting these altcoin-related ETFs approved could potentially trigger an upswing in altcoin activities, providing broader access to investors.
Higher Fees Compared to Bitcoin ETFs
In contrast to the average fees for spot Bitcoin ETFs, which range between 0.15% and 0.25%, Canary’s ETFs charge a fee of 0.95%. Balchunas acknowledged that while this may seem steep when compared to Bitcoin ETFs, it remains typical within new market segments.
He elaborated further, explaining that attracting significant flows could lead other issuers to lower their fees for competition.
New ETF Applications Continue Amid Shutdown
Despite the government shutdown, demand for new ETF filings persists. Balchunas revealed that there are about 250 applications under review, highlighting a capital-seeking environment.
Creation of new ETFs, particularly those with 3x leverage, suggests a continuing interest in diversified products, although concerns regarding volatility remain.
Approval Delays Due to Shutdown
As the SEC faces deadlines and navigates new listing standards, the stalled government operations complicate the approval landscape. Following the shutdown on October 1, the expected wave of new crypto ETFs remains uncertain as no decisions are being made currently.
[Related: Altcoin ETFs face decisive October as SEC adopts new listing standards]
