Solana, Litecoin, and Hedera ETFs Poised for Launch Despite Government Shutdown
Solana, Litecoin, and Hedera ETFs Poised for Launch Despite Government Shutdown
New exchange-traded funds (ETFs) for Solana (SOL), Litecoin (LTC), and Hedera (HBAR) are reportedly set to launch as early as Tuesday, defying the ongoing government shutdown. Industry experts and analysts, including Bloomberg's Erich Balchunas, confirm that issuers like Bitwise and Canary Capital have filed necessary forms (8-A) for these products, with automatic effectiveness clauses in their S-1 filings allowing them to proceed without direct SEC approval during the shutdown. This development marks a significant step for crypto investment products beyond just Bitcoin and Ethereum, indicating broader market maturation.
The crypto market is buzzing with reports of new exchange-traded funds (ETFs) for Solana (SOL), Litecoin (LTC), and Hedera (HBAR) set to launch this week, remarkably, even amidst an ongoing government shutdown. Investment products based on these cryptocurrencies are expected to begin trading as early as Tuesday.
Industry experts have been closely monitoring the situation. Nate Geraci affirmed that the upcoming weeks are crucial for spot crypto-based ETFs, with Solana, XRP, Litecoin, and other filings 'all lined up & ready for launch.' Bitwise CEO Hunter Horsley also hinted at a 'Big week,' suggesting progress, particularly concerning its Solana Staking ETF.
The crypto community has keenly awaited the US Securities and Exchange Commission (SEC)’s approval of these investment products. While the SEC had previously postponed decision deadlines for most applications to mid-October and mid-November, the government shutdown, which commenced on October 1, initially cast doubt on timely approvals.
However, Bloomberg ETF expert Erich Balchunas reported on Monday that multiple issuers are still looking to launch their crypto-based ETFs this week. Specifically, Canary Capital has filed 8-A forms for its spot Litecoin and Hedera ETFs, and Bitwise has done the same for its Solana Staking ETF. Balchunas noted that these preparations, along with Grayscale’s Solana trust conversion, signal a strong intent for launch.
Further confirmation came from Balchunas later, who indicated that exchange listing notices for Bitwise’s Solana Staking ETF, and Canary’s LTC and HBAR ETFs, were posted for an October 28 launch. Crypto Journalist Eleanor Terret corroborated this, citing Canary’s CEO Steven McClurg, who confirmed the Nasdaq debut for Canary’s spot HBAR and LTC ETFs on Tuesday. McClurg stated, 'Litecoin and Hedera are the next two token ETFs to go effective after Ethereum. We look forward to launching tomorrow.'
Terret explained that the launch is feasible despite the shutdown due to specific legal provisions. Issuers included language in their amended S-1 filings that allows for automatic effectiveness 20 days post-filing. This means the S-1s can go live without requiring manual SEC approval, bypassing the need for an 'open government.' The NYSE’s certification of all 8-A filings ensures that shares can commence trading, confirming that all legal requirements are met for these ETFs to proceed.