Canary HBAR ETF Seeks Approval With 19b-4 Application
Canary Capital has advanced its efforts to launch Canary HBAR ETF, with Nasdaq submitting a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) seeking approval for the proposed product.
| Key Takeaways: – Canary Capital is seeking SEC approval for the Canary HBAR ETF, with Nasdaq submitting a 19b-4 filing. – The filing aligns with a broader push for spot crypto ETFs, and experts suggest evolving regulations could favor more altcoin ETF applications. |
The crypto investment firm had previously filed an S-1 registration statement in 2023, outlining its plan to offer investors direct exposure to HBAR, the native asset of the Hedera network. Unlike other crypto-based ETFs that rely on futures or derivatives, the Canary HBAR ETF intends to hold only HBAR.
HBAR powers the Hedera network, a decentralized public ledger that utilizes the Hashgraph consensus algorithm. The network is designed for fast and secure global transactions and is governed by a council comprising leading corporations and organizations. Within the ecosystem, HBAR is used for transaction fees, decentralized applications, and governance participation.
Nasdaq’s latest filing represents a significant step in the Canary HBAR ETF approval process. If acknowledged by the SEC, it could trigger a 240-day review period, during which the regulator will evaluate the proposal. The move aligns with a broader trend of increasing applications for spot cryptocurrency ETFs as regulatory attitudes toward digital assets continue to evolve.
Industry experts have taken note of the shifting landscape. Bloomberg analyst Eric Balchunas previously predicted a surge in altcoin ETF applications in 2025, identifying HBAR as a potential frontrunner due to its non-security classification by the SEC.
Canary Capital is the first asset manager to pursue an HBAR ETF. While spot ETFs for other cryptocurrencies like Bitcoin and Ethereum have gained traction, HBAR’s entry into the market could signal growing diversification within crypto-based investment products.
Similar HBAR-focused exchange-traded products (ETPs) have already launched in Europe. In 2024, Valour Digital Securities Group and Hashgraph introduced an HBAR ETP on the Börse Frankfurt Exchange, followed by a listing on Euronext Amsterdam. Meanwhile, the SEC has previously acknowledged filings for other digital asset ETFs, including a spot XRP ETF application by Cboe BZX Exchange on behalf of Canary Capital.
The SEC’s ongoing evaluation of cryptocurrency ETFs comes amid heightened regulatory discussions. A newly established crypto task force, led by SEC Commissioner Hester Peirce, aims to provide clearer guidelines for digital asset oversight, potentially influencing future ETF approvals.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
