First US Spot ETFs for Solana, Litecoin, HBAR Launch

The groundbreaking ETF launches became possible through a carefully navigated regulatory pathway that bypassed the need for manual SEC approval. According to filings and industry sources, issuers utilized a legal provision allowing registration statements to automatically become effective after 20 days without SEC intervention. This mechanism proved crucial given the ongoing partial government shutdown that might have otherwise delayed the process.

Bloomberg’s James Seyffart noted that the SEC’s Division of Corporate Finance had previously published guidance clarifying this rule, which ETF lawyers leveraged to push through the filings. The final regulatory step occurred when exchanges like Nasdaq certified Form 8-A filings for the new funds, officially registering the ETF shares for public trading. Eric Balchunas, another Bloomberg analyst, confirmed that all exchange listing notices had been posted, calling it the ‘final step before shares can start trading.’

The new cryptocurrency ETF lineup features products from three major issuers with staggered launch dates. Canary Capital’s HBAR ETF (HBR) and Litecoin ETF (LTCC) are scheduled to begin trading on October 28, as confirmed by Canary Capital CEO Steven McClurg. Simultaneously, Bitwise’s Solana Staking ETF (BSOL) will debut on the same day, while Grayscale’s Solana Trust (GSOL) converts to a spot ETF on October 29.

Bitwise has positioned its Solana Staking ETF as the first U.S. fund offering 100% direct exposure to SOL, targeting a 7% average staking reward while waiving management fees for a limited time. Canary Capital’s HBAR ETF will hold real HBAR tokens in custody with established providers BitGo and Coinbase Custody, with pricing data supplied by CoinDesk Indices. The funds will trade on major exchanges including Nasdaq and NYSE, providing institutional-grade access to these digital assets.

These launches culminate months of speculation about altcoin funds following Bitcoin and Ethereum’s lead. Back in June, Seyffart had raised the odds of approval for Solana and Litecoin ETFs to 90%, with HBAR close behind at 75% – predictions that now appear remarkably prescient. The development fits into a broader pattern of growing demand for digital asset funds, with Bloomberg data showing 155 active ETF filings across 35 cryptocurrencies as of October 22.

Market participants have reacted with a mixture of celebration and caution. While some traders on X celebrated the milestone as ‘a win for crypto clarity,’ others noted that ‘there are still steps to take after submitting the 8-A form.’ The sentiment overall remains positive, reflecting the industry’s appetite for regulated crypto investment products. Solana and Bitcoin currently lead with 23 filings each, followed by XRP and Ethereum, indicating sustained institutional interest across multiple digital assets.

The arrival of spot ETFs for Solana, Litecoin, and HBAR represents a significant evolution in how traditional investors can gain exposure to cryptocurrencies. Analysts suggest this flood of new products could reshape the digital asset investment landscape, though many investors may eventually prefer diversified index-style funds over single-token ETFs. The successful navigation of the regulatory process sets a potential precedent for future cryptocurrency ETF applications.

This development occurs against a backdrop of increasing institutional adoption and regulatory clarity for digital assets. The ability to launch these products during a government shutdown demonstrates the resilience and maturity of the cryptocurrency ETF ecosystem. As the market continues to evolve, these pioneering funds may pave the way for broader acceptance of digital assets within traditional finance portfolios, potentially unlocking new capital flows into the cryptocurrency space.