In a major move, Canary Capital applied to the U.S. Securities and Exchange Commission (SEC) on November 12 for a spot exchange-traded fund (ETF) focused on Hedera (HBAR).
This filing is the first time a spot ETF specifically for HBAR has been proposed, setting a potential precedent for expanding crypto-related ETFs beyond Bitcoin and Ethereum.
Canary Capital’s Hedera (HBAR) Spot ETF: Will Sec Approve?
Canary Capital’s filing, an S-1 registration statement, states the HBAR ETF would provide investors direct exposure to HBAR, the native token of the Hedera network.
Unlike some crypto funds that leverage derivatives or futures, this ETF would hold HBAR tokens directly, making it a purer play on Hedera’s value.
However, the filing has not yet named the fund’s custodian and administrator, leaving key details open.
BREAKING: Canary Funds has filed an S1 to launch an $HBAR ETF with the SEC!
pic.twitter.com/gK7r2tmOXe
— MASON VERSLUIS (@MasonVersluis) November 12, 2024
Hedera is governed by a consortium of global organizations and enterprises, aiming to provide users with a balanced and secure ecosystem.
HBAR has multiple uses within the Hedera ecosystem, from driving decentralized applications (dApps) and transactions to supporting governance decisions.
Canary Capital, founded by Steven McClurg, who also established Valkyrie Funds, is no stranger to pushing the boundaries of crypto ETFs.
In addition to the HBAR ETF Trust launched for accredited investors in October, Canary Capital has submitted filings for spot ETFs covering Litecoin, Solana, and XRP.
HBAR ETF Filing Ignites Market Rally: Is This a Sign of Anticipation?
The Canary HBAR ETF filing announcement has surprised many experts, primarily due to Hedera’s relative obscurity among mainstream investors.
The company is known more for enterprise solutions in the blockchain sector and has seen increasing interest recently, especially after the launch of its AI-integrated Prove system in October.
Canary Capital’s filing states that the HBAR ETF will base its Net Asset Value (NAV) on HBAR’s price in U.S. dollars as calculated by Coindesk.
This move follows Canary’s pioneering of a Litecoin ETF filing and reflects its aggressive stance on crypto ETFs, with past applications for Solana and XRP ETFs.
The news of the HBAR ETF application has sparked a big rally for HBAR, with the token price surging over 21% to reach $0.06764. HBAR hit an intraday high of $0.074 from a previous low of $0.05317, highlighting renewed interest in the asset amid a broader market rally.
The SEC’s stance on spot crypto ETFs has evolved, with recent approvals for Bitcoin and Ethereum spot ETFs earlier this year.
Despite SEC Chair Gary Gensler’s past hesitations regarding crypto, recent shifts in political leadership could influence the regulatory environment.
Industry players are watching closely with President-elect Donald Trump, indicating a potential change in SEC leadership.
Notably, Trump has suggested that he would replace Gensler if elected, and names like Robinhood Chief Legal Officer Dan Gallagher and former SEC Commissioner Paul Atkins are reportedly under consideration for the position.
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