Bitwise, Canary Capital to Launch US Altcoin ETF Amid Ongoing Shutdown

Canary Capital is planning to introduce the first U.S. exchange-traded products (ETPs) linked to Hedera and Litecoin, according to a statement the firm shared with Reuters. The move comes even as a partial government shutdown continues to slow operations at the Securities and Exchange Commission (SEC).

At the same time, Bitwise announced plans to roll out a new exchange-traded fund (ETF) linked to Solana.

Both rollouts mark an early test of a recently simplified SEC approval framework that could open the door to a broader wave of crypto-based investment products entering the market without the drawn-out scrutiny once required for each filing.

“We’ve had multiple discussions with the SEC over the past year,” Canary CEO Steven McClurg told Reuters, adding that the firm was ready to move before the shutdown began.

Canary’s decision follows a September vote by SEC commissioners permitting three securities exchanges to adopt standardized listing rules for crypto and other commodity-based ETPs. That regulatory shift removed the final barrier for asset managers seeking to introduce a broader range of spot crypto products.

Until now, new cryptocurrency spot ETFs, such as those tied to Bitcoin introduced in early 2024, were required to undergo separate, product-by-product reviews by two divisions within the SEC. Under the new framework, firms can proceed with launches provided they meet uniform listing standards.

McClurg noted that Canary will start with the Hedera and Litecoin funds before introducing additional products in the months ahead. He said the firm is confident about these first launches, given prior discussions with regulators, but remains cautious about other pending applications that have not received the same level of clarity.

Industry analysts say the recent rule changes build on earlier efforts to modernize the ETF process. Dave Nadig, research director at ETF.com, noted that the combination of standardized listings and previous regulatory updates gives the entire industry more room to innovate.

For Solana, the Bitwise fund could represent a significant milestone. The blockchain, ranked sixth globally by market capitalization, has gained traction among institutional investors due to its fast transaction capabilities.

Bitwise said its product will include staking components, giving long-term holders a regulated path to earn returns through traditional investment accounts. “Solana is entering the mainstream, and this is only the beginning,” the company said while confirming the ETF debut.

Grayscale Investments is also expected to launch its own Solana-based ETF, known as GSOL. These developments are likely to be welcomed by enterprises like Bullish (NYSE: BLSH) and other crypto industry actors as the debut of new innovative products on the market widens the reach of digital assets.

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