Canary’s HBAR, LTC ETFs Launch Flatlines — What Went Wrong?| CCN.com

Key Takeaways

• Several altcoin-based spot ETFs debuted on Oct. 28, including Litecoin, HBAR, and Solana.
• Litecoin and HBAR ETFs saw zero inflows and minimal trading volume.
• Analysts cite weak altcoin prices and market caution for the lack of participation.

The debut of two new altcoin-based spot exchange-traded funds (ETFs) — Hedera (HBAR) and Litecoin (LTC) — was met with a resounding silence from investors.

On Oct. 28, both funds opened for trading on Nasdaq but recorded zero net inflows on their first day.

The quiet debut stands in stark contrast to ETF launches for Bitcoin (BTC) and Ethereum (ETH), which each drew billions in trading volume and marked watershed moments for institutional adoption.

A Slow Start for Canary’s Altcoin ETFs

Issued by Canary Capital Group LLC, the new spot ETFs — listed under tickers LTCC (Litecoin) and HBR (HBAR) — were the first of their kind in the U.S., expanding the ETF universe beyond Bitcoin and Ethereum.

Despite their significance, both products saw little enthusiasm on launch day.

The Litecoin ETF registered roughly $1 million in trading volume, while the HBAR ETF traded about $8 million — but neither recorded a single dollar in inflows or outflows.

Market analysts attribute the muted debut to continued volatility and uncertainty following recent delays in Securities and Exchange Commission (SEC) decisions during the U.S. government shutdown.

The lack of movement echoes on-chain data showing subdued trading activity across Hedera and Litecoin networks.

It’s a sharp contrast to the energy surrounding Bitwise’s Solana ETF, which launched the same week and posted nearly $70 million in first-day inflows.

Market Context: Delays, Dips, and Disinterest

The altcoin ETF approvals came after the SEC issued final guidance following the October government shutdown, allowing Canary to file its Form 8-A registrations on Oct. 27.

However, the broader market backdrop didn’t help.

Altcoin prices have been under pressure since mid-October, with Litecoin down 2.8% and HBAR trading flat post-launch.

The HBAR ETF closed at $27.09, tracking the coin’s spot price near $0.19, while Litecoin hovered around $98.

For many traders, the subdued debut reinforces a growing divide between major crypto assets and their smaller-cap counterparts.

Bitcoin and Ethereum remain dominant in ETF flows, while niche altcoin products struggle to attract liquidity or institutional credibility.

The Bigger Picture

Despite the tepid start, the arrival of HBAR and Litecoin ETFs represents another milestone for the evolving crypto ETF market.

The muted trading suggests investors are taking a “wait-and-see” approach, likely waiting for sustained market recovery or regulatory clarity before expanding beyond BTC and ETH.

For now, the message from the market is clear: even as the ETF universe broadens, not every coin can capture investor imagination — at least not yet.