Bitcoin News Today: Altcoin ETFs Near Approval as Shutdown Creates Regulatory Limbo

Canary Capital's spot Litecoin and Hedera (HBAR) ETF filings have reached a critical stage, with finalized ticker symbols and fee structures submitted to the Securities and Exchange Commission (SEC) on October 7, 2025. The firm disclosed that its proposed ETFs will trade under the tickers LTCC and HBR, each charging a 0.95% annual management fee. These amendments, described by Bloomberg ETF analyst Eric Balchunas as the "last thing updated before go-time," signal substantial progress in Canary's efforts to offer the first spot ETFs for altcoins beyond Bitcoin and Ethereum Canary finalizes Litecoin and HBAR ETF details amid shutdown^[1]. However, the U.S. government shutdown has created regulatory uncertainty, with the SEC operating under a skeleton crew and over 90 crypto ETF applications, including Canary's, now in limbo Canary’s Litecoin, HBAR ETFs ready to launch after shutdown^[3].

The 0.95% fee structure for the Litecoin and HBAR ETFs positions them at the higher end of the spectrum compared to spot Bitcoin ETFs, which typically range between 0.15% and 0.25%. Balchunas noted that such fees are "pricey" relative to Bitcoin products but "pretty normal" for newly launched ETFs in niche markets. He also highlighted that elevated fees often attract competition, with other issuers potentially introducing lower-cost alternatives if these ETFs gain traction Canary finalizes Litecoin and HBAR ETF details amid shutdown^[1]. The SEC's recent adoption of generic listing standards, which streamlines approval timelines from 240 days to as few as 75 days, has further tilted the regulatory landscape in favor of altcoin ETFs. This shift has prompted firms like GraniteShares to file for leveraged ETFs tracking Solana and XRP, signaling a broader market shift toward diversified crypto exposure Canary amends Litecoin and HBAR spot ETF filings with finalized tickers and fees^[2].

Despite the progress, the government shutdown has stalled the SEC's ability to process final S-1 registration statements. The agency's emergency contingency plan limits operations to "critical situations," leaving pending ETF reviews on hold. Bloomberg analyst James Seyffart described the Litecoin and HBAR ETFs as "at the goal line," but emphasized that the shutdown has introduced significant timeline uncertainty. The original October 2 decision deadline for the Litecoin ETF was missed, and the HBAR ETF now faces a review extension to October 29. With the SEC's operations constrained, the immediate launch of these products appears improbable, though analysts remain optimistic about eventual approvals once normal operations resume Canary finalizes Litecoin and HBAR ETF details amid shutdown^[1].

The regulatory bottleneck has also spurred a surge in filings for leveraged and 3x ETFs, with issuers like Tuttle Capital and ProShares submitting over 250 applications. These products, which use swaps and options to amplify returns, have drawn scrutiny from the SEC due to concerns over investor protection and market complexity. Balchunas described the filings as a "spaghetti cannon" strategy, where issuers flood the market with high-fee products to capitalize on investor demand during periods of regulatory inactivity Canary’s Litecoin, HBAR ETFs ready to launch after shutdown^[3]. This trend underscores the competitive dynamics emerging in the crypto ETF space, where firms are aggressively positioning themselves for market share even amid uncertainty.

The broader implications for the crypto market hinge on the SEC's eventual resumption of full operations. If approved, the Litecoin and HBAR ETFs could catalyze renewed investor interest in altcoins, particularly as they provide a regulated pathway for institutional and retail investors to access these assets. However, the success of these products will depend on factors such as investor adoption, fee competitiveness, and the SEC's evolving regulatory framework. The approval of altcoin ETFs under the new generic listing standards could also set a precedent for faster approvals in the future, potentially accelerating the diversification of crypto-related investment vehicles Canary amends Litecoin and HBAR spot ETF filings with finalized tickers and fees^[2]. For now, the market remains in a holding pattern, with all eyes on Capitol Hill and the SEC's next steps.