Canary Capital has filed an application with the US Securities and Exchange Commission (SEC) to launch the first spot-traded ETF for Hedera HBAR, a cryptocurrency that uses Hashgraph technology.
Canary Capital's application is in line with the trend among investment management firms to expand the offering of listed products in the cryptocurrency space.
This ETF filing could be interpreted as an indication of growing institutional confidence in cryptocurrencies, as well as expectations about the implementation of potential digital asset-friendly regulations under a new administration led by Donald Trump.
The spot ETF presented by the firm, called Canary HBAR ETF, seeks to provide direct exposure to the value of the Hedera network's native asset, HBAR, without resorting to derivatives, futures or other financial instruments, Canary Capital explained in its recent presentation.
Canary Capital files for 1st ETF for HBAR
The application submitted by Canary Capital consists of an S-1 registration, which is the standard procedure that companies that wish to offer investment products to the public must follow. In this case, the ETF would seek to provide a way for investors to access HBAR without needing to buy or store the cryptocurrency directly.
Therefore, if this ETF were to be approved, it would provide greater accessibility to HBAR, making it easier for institutional and retail investors who prefer a structured product like an ETF to invest in this cryptocurrency. Its approval would also encourage the growth of the HBAR ecosystem, as greater exposure to the cryptocurrency could boost its use and adoption of the network and its applications, benefiting both developers and users.
To date, Canary Capital has already launched an investment fund based on HBAR. However, this fund, which was launched in October, is available only to accredited investors.
On the other hand, the filing of this spot ETF application follows the firm's previous filings to offer its investors exposure to other major cryptocurrencies such as Litecoin, Solana, and XRP, for which it has also submitted S-1 forms with the intention of launching their respective spot ETFs. This application also adds to the growing pressure on the SEC to approve more cryptocurrency funds listed on the spot market, especially after the approval of ETFs for Bitcoin and Ethereum this year.
What is HBAR?
HBAR is the native token of the Hedera network, a public platform that uses an innovative consensus algorithm known as Hashgraph. This algorithm enables fast and secure transactions, as well as facilitating governance through a board composed of major corporations and organizations.
In the Hedera ecosystem, HBAR is used to pay transaction fees, participate in staking, and exercise voting rights, making it an essential component for developers and users operating on the network.
The Hedera network has gained recognition in the cryptocurrency market for its focus on security and transparency, characteristics that are increasingly valued by cryptocurrency investors. To date, Hedera is positioned among the 50 most capitalized cryptocurrencies in the market, however, the introduction of the spot ETF based on its native cryptocurrency could further boost its adoption and use in various decentralized applications.
Following the news of Canary Capital’s introduction, the price of HBAR has increased by 11%, trading at around $0,060 at the time of writing.
