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Institutional investors are brimming with excitement as exchange-traded funds (ETFs) linked to Solana (SOL), Litecoin (LTC), and Hedera (HBAR) prepare to debut on U.S. exchanges this week, even as the U.S. Securities and Exchange Commission (SEC) remains partially shut down.
Industry insiders confirm that fund issuers have filed the requisite documents and received listing notices, paving the way for a landmark expansion of crypto products into the traditional finance sphere.
The stalwart asset managers behind this push, Bitwise Asset Management, Canary Capital, and Grayscale Investments, have signalled that their funds will launch this week.
According to Bloomberg analyst Eric Balchunas, exchange listing notices have been posted for Bitwise’s Solana ETF and Canary’s Litecoin and Hedera ETFs, with launches slated for Tuesday. Grayscale’s Solana fund conversion is expected on Wednesday.
What’s key is how this is happening despite the U.S. government shutdown. Issuers are relying on regulatory mechanisms, notably Form 8-A filings and amended S-1 registration statements allowing automatic effectiveness after 20 days, to go live without requiring the SEC’s manual sign-off.
This regulatory workaround, combined with the generic listing standards approved in September, has created a rare window for altcoin ETFs to break into the market.
For Solana, this ETF launch could prove transformative. As the sixth-largest blockchain by market cap, Solana already draws institutional interest for its high-speed ecosystem.
The proposed product from Bitwise (ticker: BSOL) reportedly includes staking features, offering long-term holders a compelling “own crypto via a regulated fund” route.
Meanwhile, Litecoin and Hedera, though smaller in market cap, gain legitimacy through this ETF channel. Canary Capital’s CEO confirmed the spot LTC and HBAR funds will trade on the Nasdaq starting Tuesday under the tickers “LTCC” and “HBR”.
Institutional access is widening. Investors who previously needed to hold crypto wallets and navigate exchange custody can now access regulated funds via brokerage accounts. The market views this as a major step in bridging DeFi/crypto assets with mainstream finance.
That said, timing matters. The surrounding conditions, regulatory innovation, shutdown-driven inertia at the SEC, and investor appetite for fresh crypto exposure, have aligned uniquely.
Market watchers caution that while the launches are historic, they are not without risk, token prices, liquidity flows, and investor behaviour around product debut remain uncertain.
In sum, the crypto industry stands at a tipping point. With Solana, Litecoin, and Hedera gaining regulated ETF wrappers, the era of altcoin funds may be officially underway, despite Washington being partially shut down. The countdown is on.
Cover image from ChatGPT, SOLUSD chart from Tradingview
