Solana, Hedera, and Litecoin ETFs Set to Launch in the U.S. Despite Government Shutdown

Solana, Hedera, and Litecoin ETFs Launching in the U.S.

Solana (SOL), Hedera (HBAR), and Litecoin (LTC) exchange-traded funds (ETFs) are set to begin trading on U.S. exchanges this week, despite the ongoing federal government shutdown that has slowed financial regulation.

According to Bloomberg analyst Eric Balchunas, listing notices have appeared for Bitwise’s Solana ETF, and Canary Capital’s Litecoin and Hedera ETFs, with the funds expected to go live today, i.e Oct. 28. These listings mark the first wave of new spot crypto ETFs since Bitcoin and Ethereum ETFs were approved earlier this year.

A crypto ETF allows investors to gain exposure to digital assets like Solana or Litecoin through traditional stock exchanges, without directly buying or storing the coins themselves.

A Quiet but Important Milestone for U.S. Crypto ETFs

This week’s listings caught the market off guard. Many assumed the U.S. Securities and Exchange Commission (SEC) would delay all new ETF activity due to limited operations during the government shutdown.

However, the agency appears to be moving ahead—albeit in a reduced capacity. The sudden appearance of listing notices suggests that ETF issuers may be using generic listing standards or similar mechanisms that allow launches without waiting for direct SEC approval.

In other words, some funds are going live under existing frameworks rather than through new approvals.

Who’s Launching and When

• Bitwise: Solana (SOL) ETF
• Canary Capital: Litecoin (LTC) and Hedera (HBAR) ETFs
• Grayscale: Converting its Solana Trust (GSOL) into an ETF on Wednesday

These ETFs follow earlier approvals for Bitcoin and Ethereum spot ETFs in January 2024, which were granted to major issuers such as BlackRock, ARK 21Shares, Fidelity, and VanEck.

With Solana, Hedera, and Litecoin now joining that list, crypto ETF offerings in the U.S. are expanding beyond the top two assets for the first time.

Why the Launch Matters

Spot crypto ETFs make it easier for institutional and retail investors to gain exposure to digital assets through regulated financial products.

They remove the need for direct custody, private keys, or managing wallets, while still tracking the real-time price of the underlying tokens.

For Solana, Hedera, and Litecoin, ETF listings mean:

• Increased liquidity from institutional trading desks.
• Higher visibility for their networks and tokenomics.
• Potential inflows from traditional finance investors looking to diversify beyond Bitcoin and Ethereum.

The Staking Element

Solana’s ETF may also include a staking feature, a structure that allows investors to earn rewards from the network’s proof-of-stake mechanism.

In staking, participants lock up tokens to help validate transactions and secure the blockchain, earning yield in return.

Earlier this year, the REX-Osprey Solana Staking ETF became the first U.S.-approved staking ETF, listing on the Cboe BZX Exchange. Bitwise’s version appears to follow a similar approach, reflecting the growing interest in staking as a regulated investment option.

Grayscale has also added staking functionality to its Solana Trust, following an SEC clarification that certain staking activities do not qualify as securities offerings.

How the ETFs Are Launching Despite the Shutdown

The SEC’s partial closure on October 1 initially froze several ETF applications. But guidance issued on October 9 outlined how issuers could still move forward under specific conditions.

According to people familiar with the process, companies that file S-1 registration statements without adding a “delaying amendment” can automatically go effective after 20 days, assuming no objections arise.

This means firms confident in their filings can proceed at their own risk, even without final SEC review.

One source explained that the firms are aware the SEC could comment later, but they’re not waiting for formal approval.

Before the shutdown, the SEC had already approved new listing standards for several exchanges, such as NYSE, Nasdaq, and Cboe. These rules allow certain crypto ETFs to list more quickly, bypassing the slower 19b-4 approval process.

The recent Form 8-A filings from Bitwise and Canary Capital suggest that issuers are now taking advantage of those updated standards.

A Form 8-A essentially incorporates an already filed S-1 registration to enable exchange listing. This method can be used if the issuer meets all relevant listing requirements.

Key Players and Timelines

• Bitwise: Leading the Solana ETF launch; may include staking functionality.
• Canary Capital: Launching both the Litecoin and Hedera ETFs, confirmed by CEO Steven McClurg.
• Grayscale: Converting its Solana Trust to a spot ETF (GSOL) midweek.
• Exchanges involved: NYSE, Nasdaq, and Cboe, depending on the fund.

Eleanor Terrett of Fox Business confirmed via X (formerly Twitter) that legal filings, including 8-A forms, have been completed and certified by the NYSE.

Despite the federal shutdown, these procedural filings were handled before the shutdown, allowing the launches to move forward smoothly.

Institutional Positioning

Institutions appear ready for this next phase of crypto integration. Funds previously allocated for altcoin exposure have not been withdrawn but are waiting for ETF timelines to finalize.

The arrival of Solana, Hedera, and Litecoin ETFs provides new diversification routes for portfolios already holding Bitcoin and Ethereum ETF positions.

Market analysts say the timing may also align with November regulatory milestones, when the SEC is expected to resume full operations and finalize classification guidance for altcoin ETFs.

Technical Impact on the Networks

Each of these networks represents a distinct layer of blockchain functionality:

• Solana (SOL): High-performance proof-of-stake network focused on speed and scalability.
• Hedera (HBAR): Enterprise-oriented distributed ledger using hashgraph consensus.
• Litecoin (LTC): One of the oldest proof-of-work blockchains, widely used for fast and low-fee transfers.

ETF exposure could support broader developer and investor confidence across these ecosystems, especially for Solana’s growing decentralized finance (DeFi) and staking sectors.

Broader Implications for U.S. Crypto Regulation

The ETF launches come as regulators continue aligning frameworks for digital asset oversight. The SEC and Commodity Futures Trading Commission (CFTC) have been coordinating more closely on defining asset classifications, particularly for proof-of-stake coins.

Globally, regions like the EU and Japan have already approved multi-asset crypto ETFs, putting pressure on U.S. regulators to streamline their approach.

These developments show that, even amid political and bureaucratic gridlock, institutional crypto access continues to expand through regulated instruments.

Conclusion

The launch of Solana, Hedera, and Litecoin ETFs in the U.S. marks another steady step in integrating digital assets into traditional finance.

While the timing coincides with a government shutdown, the filings and approvals suggest that issuers and exchanges are confident enough to move ahead under existing rules.

These ETFs expand investor access beyond Bitcoin and Ethereum, offering exposure to networks with active staking, enterprise-grade infrastructure, and established liquidity.

Resources:

1. Press release - Bitwise Launches BSOL, First Spot Solana ETP in U.S.; Aims To Stake 100% of Assets In-House, Powered by Helius, To Maximize Solana’s 7% Average Staking Rewards: https://www.businesswire.com/news/home/20251027087034/en/Bitwise-Launches-BSOL-First-Spot-Solana-ETP-in-U.S.-Aims-To-Stake-100-of-Assets-In-House-Powered-by-Helius-To-Maximize-Solanas-7-Average-Staking-Rewards

2. Canary Capital, Bitwise to launch first US altcoin ETFs despite shutdown - report by Reuters: https://www.reuters.com/legal/transactional/canary-capital-plans-launch-first-us-litecoin-hedera-spot-etfs-tuesday-2025-10-27/

3. US SEC’s new listing standards: https://www.sec.gov/files/rules/sro/nasdaq/2025/34-103995.pdf