US SEC Acknowledges Grayscale's Proposed HBAR Network Token ETF

The US SEC has acknowledged a proposed rule change that would allow Nasdaq to list and trade shares of the Grayscale Hedera Trust.

The US Securities and Exchange Commission (SEC) has acknowledged a proposed rule change that would allow Nasdaq to list and trade shares of the Grayscale Hedera Trust.

The regulator has now opened a 21-day public comment period for the submitted filing, after which the SEC will decide whether to approve or disapprove the application or whether to institute proceedings.

Earlier this month, Nasdaq submitted Form 19b-4 to the SEC, requesting approval to offer Grayscale’s investment product that would hold HBAR, the native token of the Hedera Network. The trust’s shares would trade on Nasdaq under commodity-based trust share rules.

Grayscale Operating and Grayscale Investments Sponsors will serve as sponsors, while CSC Delaware Trust Company will act as trustee and Coinbase Custody Trust Company will serve as custodian.

The SEC acknowledgment does not necessarily guarantee approval of Grayscale’s proposed ETF. However, it signals a potential shift in the regulator’s stance towards crypto investment products.

This is in contrast to past instances where SEC reluctance led to the withdrawal of similar applications.

The proposal follows the SEC’s approvals of spot Bitcoin and Ethereum ETFs.

Nasdaq stated that its surveillance-sharing agreement with Coinbase Derivatives through ISG membership provides sufficient investor protections, similar to the arrangements that enabled those prior approvals.

So far, Grayscale and Canary Capital are the only two asset managers planning to launch HBAR ETFs. Last month, Nasdaq filed a 19b-4 form with the SEC for Canary Capital’s spot HBAR ETF.

Grayscale is also pursuing SEC approval for additional digital asset investment products, including those tracking XRP, Solana, Dogecoin, Litecoin, and Cardano.