Canary Capital's Litecoin and Hedera Hashgraph spot ETF applications are ready for launch, pending approval delayed by the US government shutdown. Bloomberg's renowned ETF analyst, Eric Balchunas, confirms regulatory clearance is the only hurdle. Paradoxically, the SEC's inactivity could amplify the impact of these crypto market launches.
The partial shutdown of U.S. federal agencies is currently paralyzing operations at the Securities and Exchange Commission. This situation is preventing the processing of approval applications for crypto ETFs, even when the filings are completely finalized. Eric Balchunas clarified on social media that Canary Capital’s Litecoin and HBAR ETFs are essentially “ready to launch” as soon as government activities resume.
The timing of this shutdown comes at a crucial moment for the crypto ETF industry. Following the phenomenal success of spot Bitcoin ETFs that have gathered over $30 billion in 2024, followed by the launch of Ethereum ETFs, the market is now awaiting diversification into other digital assets. Litecoin and HBAR represent precisely this new wave of altcoin ETFs that financial institutions have been anticipating for months.
The forced pause could even create a demand accumulation effect. Institutional investors who have been waiting for these regulated investment vehicles have no choice but to be patient. This waiting period could generate significant buying pressure as soon as the official launch announcement is made.
Canary Capital has quickly established itself as one of the most aggressive firms in the crypto ETF race. The issuer has simultaneously filed several spot ETF applications, aiming to expand offerings beyond the market leaders Bitcoin and Ethereum. The strategy focuses on targeting established assets with sufficient liquidity and a substantial user base.
Litecoin, often described as digital silver to Bitcoin’s gold, boasts a market capitalization exceeding $8 billion and a 13-year history without major interruptions. Its network is one of the most reliable in the crypto sector, with 2.5-minute block times and historically low transaction fees. These characteristics make it a strong candidate for a regulated ETF.
HBAR, the native token of the Hedera Hashgraph network, represents a different technology based on a directed acyclic graph rather than a traditional blockchain. With governance that includes Google, IBM, and Boeing, Hedera targets enterprise applications and has a market capitalization approaching $10 billion. The inclusion of HBAR in the ETF lineup demonstrates the growing interest in alternative architectures to blockchain.
Analysts anticipate increased volatility for LTC and HBAR during the official launch announcements. Historically, assets involved in ETF approvals experience significant price movements both before and immediately after regulatory confirmation. Bitcoin gained more than 60% in the weeks following the launch of the first U.S. spot ETFs in January 2024.
Market sentiment around these two assets has already strengthened in recent weeks. Trading volumes for LTC and HBAR have increased by 35% and 42% respectively since Canary’s filing announcements. Traders are clearly positioning their portfolios in anticipation of an influx of institutional capital once the ETFs become operational.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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