Altcoin ETFs including Litecoin and Hedera near approval… U.S. government shutdown a variable

Major altcoin exchange-traded funds (ETFs) such as Litecoin (LTC) and Hedera (HBAR) are expected to be nearing approval by the U.S. Securities and Exchange Commission (SEC). However, the ongoing U.S. government shutdown could delay the approval schedule.

On the 7th (local time), The Block reported that Canary Capital filed amended registration documents with the U.S. SEC, revealing the ticker for the 'Canary HBAR ETF' as 'HBR' and setting the management fee at 0.95%. The company also said it is developing a Litecoin ETF with the ticker 'LTCC'.

Eric Balchunas, a Bloomberg ETF analyst, said, "These kinds of details are usually finalized in the final pre-launch stage," adding, "but in a shutdown situation, it is difficult to predict the schedule." He added, "A 0.95% fee is more expensive than spot Bitcoin (BTC) ETFs, but it is common for ETFs of a new asset class."

James Seyffart, a Bloomberg ETF analyst, also said, "Litecoin and Hedera ETFs are now almost at the final stage before approval."

The SEC is currently reviewing whether to approve various crypto asset ETFs such as Dogecoin (DOGE) and XRP. These products have been submitted one after another over the past year amid a relaxed regulatory environment since the Trump administration.

However, the SEC's work has been temporarily suspended due to the U.S. government shutdown, delaying the schedule. The SEC has stated that "only a very limited staff is on duty to respond to emergency situations."

Meanwhile, global asset manager GraniteShares filed new documents on the same day to launch leveraged ETFs for Solana (SOL), Ripple (XRP), and Ethereum (ETH), and it was reported that multiple similar ETF applications were filed last week as well.