Government shutdown has delayed SEC reviews, leaving over 90 crypto ETF applications in limbo with minimal staff operations.
Canary Capital filed amended registration statements with the Securities and Exchange Commission on October 7, revealing finalized ticker symbols and fee structures for its proposed Litecoin and Hedera spot exchange-traded funds.
The filings disclosed that both products will trade under tickers LTCC and HBR respectively, with each charging a 0.95% sponsor fee.
Bloomberg Senior ETF analyst Eric Balchunas noted that ticker symbols and fee structures represent the final details updated before regulatory approval.
The amendments signal substantial progress in Canary’s pursuit of becoming among the first asset managers to offer spot ETFs tracking altcoins beyond Bitcoin and Ethereum.
Bloomberg Intelligence analyst James Seyffart stated that the Litecoin and HBAR ETF products appear positioned “at the goal line” following the October 7 amendments.
Balchunas characterized the documents as “pretty finalized,” though he acknowledged that ongoing government operations disruptions create timeline uncertainty.
The 0.95% management fee places both products at the higher end compared to Bitcoin spot ETFs, which typically charge between 0.20% and 0.50%.
Balchunas described the pricing as “pricey” relative to Bitcoin products but noted that elevated fees are “pretty normal” for ETFs entering new asset categories.
The U.S. government shutdown has significantly impacted the SEC’s ability to process pending crypto ETF applications. The agency operates under an emergency contingency plan with an extremely limited staff available only for critical situations.
Fox Business reporter Eleanor Terrett highlighted that the shutdown could influence approval timelines since the SEC must greenlight final S-1 registration statements before launch. The agency has not clarified which staff members remain operational or their current priorities during the shutdown period.
The SEC’s adoption of generic listing standards for crypto ETFs has moved regulatory focus from traditional 19b-4 exchange rule filings to S-1 registration reviews. This procedural shift potentially reduces approval timelines from 240 days to as few as 75 days under the streamlined framework.
Canary Capital joins numerous asset managers filing for altcoin ETF products following the Trump administration’s more accommodating stance toward digital assets.
On the same day as Canary’s amendments, GraniteShares filed registration statements for multiple leveraged ETFs tracking Solana, XRP, and Ethereum.
The Litecoin ETF application faced an initial October 2 decision deadline that the SEC missed due to shutdown-related operational constraints. The HBAR ETF review period extends to October 29, marking 240 days from the February 21 filing date.
