Canary Capital filed key amendments for its Litecoin and HBAR exchange-traded funds on Tuesday, signaling potential approval despite the government shutdown.
The asset manager submitted updates adding a 0.95% fee structure and tickers “LTCC” for its Canary Litecoin ETF and “HBR” for its Canary HBAR ETF. Bloomberg ETF analyst Eric Balchunas noted these additions typically represent the final updates before launch.
Balchunas posted on X Tuesday that the filings “look pretty finalized to me,” though the U.S. government shutdown and Securities and Exchange Commission operating with minimal staff make approval timing uncertain.
Fellow Bloomberg analyst James Seyffart agreed the amendments indicate imminent approval, stating it “feels like Litecoin and HBAR ETFs are at the goal line here.”
The 0.95% fees exceed spot Bitcoin ETF averages of 0.15% to 0.25%, but Balchunas characterized this as normal for new and increasingly niche areas. He suggested other issuers might undercut Canary with cheaper products if the ETFs attract decent flows and investor interest.
Despite the shutdown, companies continue to file new ETF applications with a focus on 3x leverage funds. ETF issuer Tuttle Capital filed for 60 new 3x ETFs, while GraniteShares submitted applications holding various assets including Bitcoin and Ethereum.
Balchunas estimates close to 250 3x ETF filings exist, noting that issuers “spaghetti cannon” many at once because they generate significant revenue. These ETFs create 2x leverage using swaps, then use options to target an additional 1x.
The crypto industry anticipated a wave of new crypto ETFs in October, with the SEC scheduled to make final decisions on 16 applications throughout the month. New listing standards announced in September could expedite approvals by eliminating individual assessments.
The government shutdown, which began Oct. 1, has left everything uncertain as deadlines pass without action taken. The SEC stated it would continue to operate with a skeleton crew during the shutdown.