The Bridge Between Traditional Finance and Crypto's Next Bull Run
For years, traditional finance (TradFi) scoffed at cryptocurrency. Now, the same institutions that dismissed it are fighting to launch their own crypto ETFs. This shift is happening faster than anyone anticipated. The approval of even one such ETF could be a significant catalyst, but the launch of three could ignite a historic bull run. These ETFs are poised to legitimize the entire industry overnight. More than just investment vehicles, they represent the crucial bridge between TradFi and crypto's next major growth phase.
This article explores how these ETFs could finally connect Wall Street and Web3, potentially redefining the future of digital assets.
Navigating Regulatory Hurdles: The 8-A Form and Automatic Effectiveness
A key question arises: can these spot ETFs launch successfully even with a potential government shutdown? While one might assume a shutdown would halt proceedings, the reality is more nuanced. The answer lies in understanding the regulatory process, specifically the S-1 and 8-A forms.
The Role of the S-1 and 8-A Forms
The S-1 form is the initial registration statement filed with the Securities and Exchange Commission (SEC). It is a critical step in the ETF registration process. However, the 8-A filing form is equally essential. This form registers a company's securities for trading on an exchange. For crypto ETFs, filing the 8-A signifies that the fund is one step closer to approval and readiness for trading. While the filing itself does not constitute SEC approval, it is a procedural requirement that must be met before ETF shares can be listed and offered to the public. The 8-A filing is made under the Securities Exchange Act of 1934, while the S-1 is registered under the Securities Act of 1933.
Automatic Effectiveness as a Regulatory Workaround
Typically, the SEC needs to approve these filings. However, the issuers of these three ETFs employed a strategic approach by amending their S-1 filings to include provisions for automatic effectiveness 20 days after filing. This means the SEC does not require manual approval for each fund, allowing the filings to proceed even during a shutdown. As journalist Eleanor Terrett reported on X, these ETFs have "ticked all legal boxes."
🚨NEW: @CanaryFunds spot $HBAR and $LTC ETFs are now effective and will begin trading on the NASDAQ tomorrow, according to CEO @stevenmcclurg.
“Litecoin and Hedera are the next two token ETFs to go effective after Ethereum,” McClurg told me in a statement. “We look forward to… https://t.co/tPjsjLEE3R
— Eleanor Terrett (@EleanorTerrett) October 27, 2025
Eric Balchunas, a senior ETF analyst for Bloomberg, also confirmed that these three ETFs are set to launch, with the caveat of "assuming there’s not some last min SEC intervention."
Confirmed. The Exchange has just posted listing notices for Bitwise Solana, Canary Litecoin and Canary HBAR to launch TOMORROW and grayscale Solana to convert the day after. Assuming there’s not some last min SEC intervention, looks like this is happening. https://t.co/bHwRnc1jsn
— Eric Balchunas (@EricBalchunas) October 27, 2025
The ETFs can begin trading without separate, new SEC sign-offs for each fund due to new exchange/adoption and automatic effectiveness procedures. This regulatory framework is supported by several components:
- •SEC rules and prior staff interaction.
- •Exchange rule filings.
- •Issuer S-1/8-A filings.
In essence, these ETFs are launching because the necessary regulatory paperwork, including filings and exchange notices, is in place, not because the SEC has overlooked them.
Spotlight on the New Spot ETFs
With the regulatory groundwork laid, let's examine the three newly launched spot ETFs.
Solana ($SOL) ETF
The first spot ETF to be covered is the Bitwise Solana $SOL spot ETF, which also functions as a staking ETF. This innovative structure allows investors to earn passive income through staking $SOL without directly owning the asset. The ETF will trade under the ticker symbol $BSOL.
Introducing $BSOL — the Bitwise Solana Staking ETF. Starts trading tomorrow.
– First U.S. ETP to have 100% direct exposure to spot SOL
– Maximizing Solana’s 7%+ average staking reward rate*
– Targeting 100% of assets staked
– Staking through Bitwise Onchain Solutions, powered by… pic.twitter.com/Vo8Ko0qOCn— Bitwise (@BitwiseInvest) October 27, 2025
This makes it the first U.S. Exchange Traded Product (ETP) with 100% direct exposure to spot $SOL. It also offers an average staking reward rate of over 7% on $SOL. Bitwise is currently waiving fees for a limited time.
A Grayscale spot ETF is also expected to launch the day after these three, as noted by Eric Balchunas.
Interestingly, the $SOL price has remained relatively stable, trading sideways around the $200 range, despite the ETF announcement. While Solana is still considered a strong contender for this quarter, this lack of significant price movement is noteworthy.
$SOL is still holding its 3-year support trendline.
The most important level for Solana is $280, and a weekly close above it will trigger a massive rally.
I still think $400-$500 SOL is happening this cycle. pic.twitter.com/vPOkJwWnGS
— BitBull (@AkaBull_) October 26, 2025
Hedera ($HBAR) ETF
The second ETF is the Hedera $HBAR spot ETF from Canary Capital. The Nasdaq has officially published the listing circular for the Canary $HBAR ETF, which will trade under the ticker $HBR. BitGo and Coinbase Custody will serve as custodians, while CoinDesk Indices will provide official pricing.
CONFIRMED: Nasdaq has officially posted the Canary $HBAR ETF (Ticker: $HBR) listing circular.
The fund is set to begin trading on October 28, 2025, offering direct SPOT exposure to $HBAR , the native token of the Hedera Network.
The ETF will hold real HBAR in custody with BitGo… https://t.co/FImurRdDIxpic.twitter.com/w0bvMi2pRV
— Gilmore Estates (@Gilmore_Estates) October 27, 2025
Canary Capital's CEO, Steven McClurg, highlighted that the $HBAR ETF provides institutional investors with regulated access to Hedera, eliminating the need for direct crypto ownership. This is a significant advantage for many investors, particularly institutions, as the issuer holds the underlying asset, simplifying the investment process and removing the need for crypto exchanges and wallets.
In contrast to $SOL, the $HBAR price has seen a positive reaction. It is up by 17.8% to 21 cents today and has risen by 26% over the past seven days. Investors who acquired $HBAR a year ago are currently up by 346%. Some analysts project $HBAR to reach as high as 48 cents.
🔹 $HBAR – Hedera Hashgraph
📍 Current Price: $0.1995
🎯 Upper Target: $0.31 – $0.48
📉 Lower Target: $0.17 – $0.11
⚠️ Just my prediction, not financial advice.
🔖 #HBAR#Hedera#Enterprisepic.twitter.com/QlUuS5iNJc— FOLLOW ME GUYS 😎😎 (@khazin121) October 28, 2025
Litecoin ($LTC) ETF
The final ETF discussed is the Canary Capital Litecoin $LTC spot ETF, ticker $LTCC. This launch may resonate with long-term holders of $LTC who have maintained their positions. The $LTC spot ETF is now a reality.
Canary Capital has just filed form 8-A with the SEC for the Canary Litecoin ETF to be listed on the @Nasdaq. Indicating that a launch is imminent and trading could soon commence. (NASDAQ:LTCC)
Source: https://t.co/bvZW2tiROnpic.twitter.com/1yl8oM6G8l
— Litecoin Foundation ⚡️ (@LTCFoundation) October 27, 2025
The $LTC price has also reacted positively to the Nasdaq listing, currently trading at $102, up 2.8% on the day. The question remains whether this ETF will be the catalyst for $LTC to reach $400 and new all-time highs.
Some companies might be secretly buying $LTC and once they about to finished their purchase, they will make the announcement.
People will start to get interest in it, together with ETF approval. It could give a good run up in Nov-Dec.$LTC back to $400 in Dec 2025. pic.twitter.com/HkCHrkd8mm
— Łɪᴛᴏ (@Litoshilite) October 25, 2025
Impact on Asset Prices and Market Dynamics
The introduction of Bitcoin ($BTC) and Ethereum ($ETH) ETFs previously led to short-lived price surges, typically between 5% to 15%, followed by retracements as the initial hype subsided. A significant portion of the early inflows consisted of liquidity-seeking arbitrage trades rather than long-term holdings.
In the medium term, ETFs are expected to stabilize prices and support gradual appreciation. Staking options, such as the $SOL ETF, are particularly beneficial.
For Hedera and Litecoin, the extent of price impact will depend on factors like fund liquidity depth and index inclusion. These assets also have smaller ecosystems and fewer dominant narratives compared to larger cryptocurrencies.
While these ETFs may provide a modest price lift and enhance credibility, especially for Solana, which has strong institutional and DeFi traction, they are unlikely to create instant wealth. Sustained growth will require time. The most significant value these ETFs offer may be in building credibility and increasing visibility, positioning Solana as a mainstream, investable asset, with Hedera and Litecoin benefiting to a lesser degree.
The Value of Early Information: Why This is Useful Alpha
Understanding these developments provides valuable alpha, as ETFs often influence markets well before their official launch. Savvy traders recognize this and position themselves early, anticipating the liquidity and FOMO that flood in upon approval, leading to price surges.
The key is not to chase hype but to identify filings, trends, and timing entries before the broader market. By positioning oneself early, one can profit from these market shifts.