What are Litecoin ETFs and HBAR ETFs?

Asset manager Canary Capital has been making strides towards launching its Litecoin ETFs and HBAR exchange-traded funds. Recent filings, which include key final details, suggest that these financial products are near approval. However, the shutdown of the U.S. government has put a temporary halt on the process.

The recent amendments to the Litecoin (LTC) and Hedera (HBAR) spot ETFs introduced a fee of 0.95% and new tickers, LTCC and HBR. According to Bloomberg ETF analyst Eric Balchunas, these additions typically indicate that the funds are ready for launch.

Approval Delays Due to Government Shutdown

With the U.S. Securities and Exchange Commission (SEC) operating with limited personnel, the exact timeline for the approval of Litecoin ETFs remains uncertain. James Seyffart, another Bloomberg analyst, believes that these updates are positive signs, hinting that the ETFs are close to the “goal line.”

Crypto exchange Bitfinex had predicted in August that the authorization of altcoin-linked ETFs might ignite a new rally in altcoins, as such products would provide investors with increased access to these tokens.

Comparing Fees: A Closer Look

The fees for these ETFs are notably higher than those for spot Bitcoin ETFs, which average between 0.15% and 0.25%, according to Ledger. However, Balchunas mentioned that higher fees are typical for new and niche ETF sectors.

If the Litecoin ETFs and HBAR ETFs generate significant interest, it could lead to competition among issuers, with attempts to offer more cost-effective alternatives.

High-Leverage ETFs: The “Spaghetti Cannon” Approach

Despite the government shutdown, companies continue to file for new ETFs, with a particular focus on funds featuring 3x leverage. A 3x ETF tracks a range of assets and uses leverage to triple the daily or monthly returns.

Previous attempts to approve high-leverage crypto ETFs have been met with resistance from the SEC due to concerns over investor protection and market volatility. Tuttle Capital and other issuers have continued to file for these products, aiming to meet the demand of investors seeking high returns.

Future Prospects Amidst Uncertainty

The crypto industry had anticipated a significant influx of new crypto ETFs this October, with the SEC scheduled to make final decisions on numerous applications. Unfortunately, the government shutdown, which began on October 1, has left these plans in limbo.

While the SEC has announced that it will maintain limited operations, the approval process for Litecoin ETFs and other crypto products remains uncertain. Despite these challenges, the potential of these ETFs continues to generate significant interest in the crypto community.

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Just over a month ago, ETH experienced a sharp price drop to its lowest level in over a year, pegged at $1,400 on April 9. Although it showed some recovery in the following weeks, it faced challenges in confidently surpassing the $1,800 mark. This changed with the recent positive macro developments and the implementation of the Pectra upgrade, which led to a sharp increase in ETH’s price.

On a daily basis, ETH has shot up by nearly 9%. However, its weekly surge is even more remarkable – nearly 40%, pushing its price well beyond the psychological resistance of $2,500.

Other altcoins have followed in ETH’s footsteps with significant price gains. DOGE, for instance, has surged by over 16% and is currently trading above $0.24. ADA, AVAX, LINK, SHIB, HBAR, TON, and PEPE have also shown impressive growth. PI, UNI, and NEAR have recorded double-digit price increases over the past day, while LEO stands out as one of the few tokens in the red.

The total crypto market cap has swelled by an additional $70 billion and now stands at $3.470 trillion, according to CG.

While Bitcoin (BTC) remains green on a daily scale, its gains are less dramatic. BTC has seen a modest increase of less than 1% and is trading above $104,000, after being halted at $105,000 earlier. On a weekly scale, BTC has leaped by almost 9%, breaking the $100,000 barrier for the first time in over three months.

However, BTC’s dominance over the altcoins has experienced a significant decrease. The metric, which was as high as roughly 62% a few days ago, has dropped to under 60% as of now. Despite this, BTC’s market cap continues to rise and is currently pegged at $2.070 trillion on CG.

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The 19b-4 filing is a crucial part of a two-stage process for proposing a crypto ETF to the SEC. Upon recognition by the SEC, the filing will be published in the Federal Register, thereby launching the agency’s approval process.

Hedera is a globally recognized decentralized public network that leverages the Hashgraph consensus algorithm to enable swift and secure transactions. Unlike most cryptocurrencies, Hedera is controlled by a council comprising renowned companies and organizations tasked with decision-making and token distribution.

As per the filing, “Even though the primary objective of the Hedera Network is not to function as a payment system or store of value like most public distributed ledger technology (DLT) networks, it necessitates a cryptocurrency to operate efficiently and encourage consensus and network behavior.”

Recent estimates by Bloomberg analysts suggest that Litecoin ETFs have the highest likelihood of approval (90%) among the wave of spot crypto ETFs. After Canary Capital’s 19b-4 filing for their HBAR ETF, Eric Balchunas of Bloomberg stated, “This follows their amended S-1 last week (which indicates SEC’s feedback, giving HBAR and Litecoin the best chances and the front-runner position among the current batch of altcoin ETF filings).”

Following this news, the price of Hedera’s token witnessed a slight surge on Monday, trading approximately at $0.22, according to The Block’s HBAR price data.

Disclaimer: The Block operates independently, providing timely, impactful, and unbiased information about the crypto industry. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures also invests in other crypto companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. This article is intended for informational purposes and should not be considered as legal, tax, investment, financial, or other advice.

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Bitcoin’s price took a nosedive, starting off Sunday morning and escalating into Monday, pushing the digital currency to a three-week low, roughly $91,000, on most trading platforms. Altcoins suffered a worse fate in the past 36 hours, with many experiencing double-digit percentage drops.

Bitcoin Asserts Dominance

Just three days ago, the leading cryptocurrency was valued at over $106,000, seemingly unaffected by the US Federal Reserve’s decision to maintain the current interest rates. Its price began to decline on Saturday, reaching $102,000, marking the beginning of a harsher correction period.

After the US President Donald Trump imposed tariffs on Canada, Mexico, and China on Sunday, the market reaction was swift. Bitcoin’s price fell from $102,000 to $97,000, where it remained for most of the day. The downward trend continued into Monday, with a sudden drop of $6,000, sending Bitcoin’s value under $92,000—a $10,000 loss since Sunday.

Although Bitcoin has since recovered slightly to over $95,000, the market cap has fallen below $1.9 trillion. Despite this, Bitcoin’s dominance over altcoins has risen to nearly 59% on CoinGecko, representing a 3% increase in just one day.

Altcoins Take a Hit

The rise in Bitcoin’s dominance indicates a severe blow to altcoins. Ethereum, for instance, fell from over $3,000 to below $2,300 before stabilizing close to $2,600. Solana and Tron are among the few altcoins that experienced a single-digit percentage drop within the last 24 hours.

In contrast, BNB, XRP, DOGE, ADA, LINK, AVAX, XLM, TON, SUI, HBAR, and SHIB saw dramatic double-digit percentage declines, with ADA suffering the most significant loss—up to 23%. The total crypto market cap shed over $400 billion at its lowest point and now hovers just above $3.2 trillion on CoinGecko.

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