Canary Capital Launches First Hedera (HBAR) Exchange-Traded Fund (ETF)

Canary Capital, a Nashville-based asset manager, has decided to launch its first Hedera (HBAR) exchange-traded fund (ETF).

Nashville-based asset manager Canary Capital has filed an amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch its first Hedera (HBAR) exchange-traded fund (ETF), Fox Business journalist Eleanor Terrett reported on March 14.

This marks the first time a U.S. exchange has formally engaged in the HBAR ETF approval process. The development comes as institutional interest grows in Hedera's enterprise-focused blockchain network.

The amended filing also specifies Nasdaq as the proposed listing exchange for the ETF, signaling a strategic upgrade from Canary Capital's previous ETF applications for Litecoin (LTC), XRP (XRP) and Solana (SOL). While the S-1 outlines the fund's structure, Nasdaq is yet to submit a complementary Form 19b-4, a critical regulatory requirement for exchange-traded products.

Analysts now speculate that Nasdaq's involvement in this process, especially given its established track record with crypto adjacent ETFs, could streamline the regulatory review.

HBAR Surges 6% Following the News

HBAR reacted positively to the news, surging by 6.0% in the last 24 hours and trading at $0.2238 at press time. The token's market capitalization also crossed the $9 billion mark, according to CoinGecko.

"Nasdaq's participation elevates this from a speculative filing to a credible market infrastructure play," noted Eric Balchunas, ETF analyst at Bloomberg.

March has seen a flurry of filings for altcoin ETFs, including a Bitcoin Diamond (BCD) physically settled ETF by GraniteShares and a Kava (KAVA) ETF by Roundhill. Notably, both filings also included Nasdaq as the listing exchange.

Meanwhile, several filings are still awaiting regulatory approval, such as VanEck's Bitcoin Strategy ETF and Kryptoin's Physical Bitcoin ETF, both of which had their review periods extended.

Institutions Ramp Up Pressure for Altcoin ETF Approvals

As regulatory attention shifts towards手続き上問題があるため、リクエストを完了できませんでした。 support for altcoin ETFs, institutional players are ramping up their efforts to get these products listed on major U.S. exchanges.

Recently, Genesis Trading and Galaxy Digital applied to launch a decentralized finance (DeFi) ETF, while asset manager BlackRock filed for a Web3 ETF in the latest institutional foray into the crypto markets.

However, regulatory uncertainty persists, especially with President Donald Trump's transition team signaling potential changes in the SEC leadership, which will be more leaned towards a crypto-friendly stance.

Despite the regulatory headwinds, analysts still believe that it might take 12-18 months for the review period. If approved, this move could unlock $400 million in inflows.

Canary Capital, known for its aggressive ETF filings, also filed an HBAR Trust for accredited investors on Oct. 2024. These filings come as a response to the successful launches of Bitcoin and Ether ETFs in 2023, paving the way for altcoin investment vehicles.