Canary Capital Seeks SEC Approval for First HBAR ETF

After pushing for Solana, XRP, and Litecoin ETF products, Canary Capital has now filed to list HBAR ETF products in the US

Canary Capital, a venture capitalist firm, has made history by filing for the first-ever spot exchange-traded fund (ETF) for Hedera (HBAR). 

This initiative was filed with the U.S. Securities and Exchange Commission (SEC) earlier today. The bold move introduced a novel way to gain exposure to HBAR, Hedera’s native digital asset. 

The filing marks a significant milestone in the world of crypto investment products. It is poised to open doors to institutional and retail investors alike.

The HBAR ETF – New Avenue To Bet on Hedera

Unlike most cryptocurrency funds that rely on derivatives or futures, Canary Capital’s HBAR ETF would offer direct exposure to HBAR itself. 

According to the filing, the investment vehicle would solely hold HBAR tokens, bypassing the use of more complex financial instruments. 

This purity of investment could appeal to those seeking an uncomplicated way to participate in Hedera’s potential. It aims to offer a clean, direct method without derivatives’ added risks or complexity.

Hedera’s unique blockchain infrastructure is at the heart of this innovative ETF, which operates on the Hashgraph consensus algorithm. Unlike traditional blockchain systems, Hashgraph promises faster, more secure transactions. 

A council of top-tier companies and organizations governs the Hedera network. This governance model aims to provide secure and compliant token distribution. This approach ensures that the Hedera ecosystem remains robust and reliable for all participants.

Canary Capital and Odds of SEC Approval 

Canary Capital’s push for the HBAR spot ETF is not its first attempt into the crypto investment world. In October, the firm launched an HBAR Trust specifically for accredited investors, which displayed its commitment to expanding its crypto-focused offerings. 

The firm’s founder, Steven McClurg, has a history of filing registration statements for other spot crypto ETFs, including those for Litecoin, Solana, and Ripple’s XRP. This history has made Canary Capital a notable player in legitimizing crypto ETFs.

Despite this track record, the SEC’s response to these filings remains unpredictable. Although the agency approved some spot Bitcoin and Ethereum ETFs earlier this year. However, the future of additional spot crypto ETFs remains in the air. 

SEC Chair Gary Gensler has clarified that each filing requires careful deliberation by the commission. His stance has added a layer of uncertainty to the future of crypto ETF approvals.

The future of crypto ETFs hinges on regulatory approval and political dynamics. Speculation about Gensler’s potential departure has fueled discussions on the future of crypto regulation. 

As President-elect Donald Trump signals potential changes in SEC leadership, the crypto investment products landscape could significantly transform.

If the SEC greenlights additional spot crypto ETFs, it could usher in a new era, linking traditional finance with digital assets.

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