U.S. financial markets are poised for a significant expansion of institutional crypto investment, as Canary Capital prepares to launch exchange-traded funds for Litecoin and Hedera on Nasdaq, signaling wider regulatory embrace for digital assets beyond Bitcoin and Ethereum.
The investment firm confirmed its Canary Litecoin ETF and Canary HBAR ETF will begin trading on Tuesday, October 28. This move highlights growing momentum for cryptocurrency-based financial products.
Steven McClurg, CEO and founder of Canary Capital, described the launch as a “historic moment” for the industry.
“This is another milestone in a crucial year for the sector,” McClurg stated. “At Canary we are incredibly proud to have fulfilled our mission to bring registered crypto investment solutions to the broader investing public.”
The debut follows recent clarifications from the U.S. Securities and Exchange Commission (SEC) regarding S-1 registration procedures. These new guidelines allow companies seeking to go public to file without a “delaying amendment,” enabling automatic effectiveness after 20 days.
This regulatory progress comes despite challenges posed by a U.S. government shutdown. Canary Capital reportedly filed two 8-A forms for the LTC and HBAR ETFs on Monday, a necessary step for their activation.
The new funds represent a continued increase in institutional investor interest in digital assets. This trend accelerated earlier in the year with the approval of several Bitcoin and Ethereum-based ETFs. These products offer a regulated pathway for investors to gain exposure to cryptocurrencies without directly holding the tokens, thereby reducing operational and custody risks.
Litecoin (LTC) and Hedera (HBAR) are both among the top 30 cryptocurrencies by market capitalization. Litecoin functions as a faster, more economical alternative to Bitcoin, primarily used for peer-to-peer payments.
Hedera’s native token, HBAR, powers a decentralized public network. It utilizes the Hashgraph consensus algorithm, recognized for its speed and security in transaction validation.
Their inclusion in new ETFs reflects a desire for diversification in institutional portfolios beyond established cryptocurrencies like Bitcoin and Ethereum. The U.S. market is solidifying its position as a more welcoming environment for the institutional adoption of digital assets, a trend projected to continue into 2026 with further expansion of ETFs linked to alternative networks and their associated tokens.
Other firms are also advancing with crypto-related offerings. Grayscale, for example, is reportedly planning the launch of its Grayscale Solana Trust ETF for Wednesday of this week.