US SEC Acknowledges Grayscale's Application to List a Hedera (HBAR) ETF on Nasdaq

This step marks the beginning of a 21-day public comment period, after which the SEC will decide whether to approve, disapprove, or proceed with further review.

The U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale’s application to list a Hedera (HBAR) ETF on the Nasdaq stock exchange.

What Happened: The SEC has opened a 21-day period for public comment on the application. This follows Nasdaq’s filing for approval to list shares of the Grayscale Hedera Trust.

The shares of this trust would trade under commodity-based trust share rules, according to the SEC.

The application was made by Nasdaq on behalf of Grayscale. BNY Mellon Asset Servicing would act as the administrator and transfer agent for the trust.

Coinbase Custody Trust Company will serve as the custodian, and CSC Delaware Trust Company will be the trustee.

Earlier this year, Grayscale began the process of applying for the launch of several cryptocurrency ETFs. These applications were filed after the SEC approved applications for Bitcoin (BTC) and Ethereum (ETH) ETFs.

Nasdaq said its surveillance-sharing agreement with Coinbase Derivatives, through ISG membership, provides sufficient investor protection. This agreement was critical for past ETF approvals, and Nasdaq highlighted its role in ensuring market integrity.

Where Is The Focus: The SEC is focusing on the role of surveillance in the crypto markets. It is also interested in the reporting capabilities of firms involved in crypto trading.

After the 21-day comment period, the SEC will decide whether to approve or disapprove the application, or it may open further proceedings.

Earlier this year, another firm, Canary Capital, filed an application with the SEC for the listing of a Hedera ETF on the New York Stock Exchange.

Grayscale is also seeking to expand its digital asset portfolio with applications for ETFs based on assets likePolkdot (DOT), XRP, Dogecoin (DOGE), Solana (SOL), and Cardano (ADA).

What’s Next: The SEC’s decision on the Grayscale Hedera ETF application will have implications for the cryptocurrency investment landscape.

It remains to be seen how the regulator will factor in recent changes in Bitcoin futures ETFs and the broader macroeconomic environment.