U.S. Welcomes Initial Spot ETFs for Solana, Litecoin, and HBAR Amid SEC Developments
The first spot exchange-traded funds (ETFs) for Solana, Litecoin, and Hedera are launching this week despite parts of the U.S. government being closed.
U.S. Welcomes Initial Spot ETFs for Solana, Litecoin, and HBAR Amid SEC Developments
The U.S. market is about to embrace its first spot exchange-traded funds (ETFs) for Solana (SOL), Litecoin (LTC), and Hedera (HBAR).
The funds, issued by Bitwise, Canary Capital, and Grayscale, are set to begin trading today and tomorrow on Nasdaq and the NYSE, based on filings and insights from industry sources.
Legal Loophole and Market Reaction
On October 27, Journalist Eleanor Terrett reported on X that the final regulatory step was completed when exchanges like Nasdaq certified the Form 8-A filings for the new funds. This form confirms the registration of ETF shares for public trading.
According to Canary Capital CEO Steven McClurg, the Canary HBAR ETF (HBR) and Canary Litecoin ETF (LTCC) are slated to start trading on October 28. Simultaneously, the Bitwise Solana Staking ETF (BSOL) will launch, and Grayscale’s Solana Trust (GSOL) will convert into a spot ETF on October 29.
These launches are occurring even amid partial U.S. government shutdowns. Issuers utilized a legal provision allowing registration statements to activate automatically after 20 days without SEC interference, thereby eliminating the need for a manual sign-off.
Bloomberg’s James Seyffart added insights that the SEC’s Division of Corporate Finance had released guidance on this rule, which ETF attorneys leveraged to expedite the filings process. Eric Balchunas, another Bloomberg analyst, noted that all exchange listing notices had been officially posted, denoting it as the “final step before shares can start trading.” Some traders on X have expressed mixed feelings regarding the speed of the process, with one user cautioning that more steps follow the submission of the 8-A form, while others hailed the milestone as a significant win for crypto clarity.
Broader Context and What Comes Next
These new ETFs mark a notable development amidst ongoing speculation around altcoin funds potentially keeping pace with Bitcoin and Ethereum. Back in June, Seyffart projected a 90% chance of approval for Solana and Litecoin ETFs, with HBAR closely tracking at 75%. His predictions seem accurate at this point.
This launch reflects an increasing demand for digital asset funds. Data from Bloomberg shows 155 active ETF filings across 35 cryptocurrencies as of October 22, with Solana and Bitcoin leading the charge with 23 filings each, followed by XRP and Ethereum.
Analysts believe this influx of new products could revolutionize the approach traditional investors take to gain exposure to crypto, with many likely preferring diversified index-style funds to single-token ETFs.
