First-Ever Hedera ETF-in-the-Making?
The push for altcoin ETFs in the US has gained momentum in recent months, with Canary Capital submitting an S-1 form for a Hedera (HBAR) ETF to the US Securities and Exchange Commission (SEC) on 13 November.
This latest application from the crypto asset manager is part of its ongoing expansion into crypto funds, with timing that aligns with market optimism around the incoming Donald Trump administration.
According to the SEC filing, the proposed Canary HBAR ETF would directly hold only Hedera's native token, without derivatives, futures, or other financial instruments.
JUST IN: 🇺🇸 Canary Capital Files Registration Statement With The SEC For An $HBAR ETF!
The Trust’s investment objective is to seek to provide exposure to the value of the native asset of the Hedera Network (“HBAR”)
Are you bullish on the future of $HBAR?
Comment Below &… pic.twitter.com/8rfMv3eOhT
— Good Morning Crypto (@AbsGMCrypto) November 12, 2024
Community Abuzz with HBAR ETF Filing
Canary Capital's recent filing for a HBAR ETF coincides with Trump's re-election, during which he has voiced strong support for the expansion of the digital asset industry.
Trump has pledged to replace SEC Chairman Gary Gensler and establish a comprehensive regulatory framework for crypto markets, which could simplify the approval process for crypto-based index funds by 2025.
The HBAR ETF filing has surprised many ETF experts, as the Hedera Network and its ecosystem remain relatively unknown in mainstream financial circles.
Despite this, Canary Capital remains committed to holding HBAR and has stated that the fund's Net Asset Value (NAV) will be based on HBAR prices in US dollars as calculated by CoinDesk.
Building on its pioneering Litecoin ETF application, Canary Capital's pursuit of an HBAR ETF underscores its aggressive strategy in the crypto asset management space.
Canary Capital has filed the first Form S-1 for a LTC ETF with the U.S. Securities and Exchange Commission (SEC). If approved, the ETF will provide both consumer and institutional investors with wide-spread direct exposure to #Litecoin ‘ $LTC ’ ⚡️https://t.co/ob3heK7dFS pic.twitter.com/IfjcdCPle6
— Litecoin Foundation ⚡️ (@LTCFoundation) October 15, 2024
Furthermore, the firm has applied for spot Solana and XRP ETFs, reflecting its confidence in the evolving regulatory landscape.
The Hedera Network, known for its enterprise adoption, has recently attracted attention with the integration of Prove AI in October, signalling potential growth despite its previous obscurity.
Big news: Casper Labs is now Prove AI! 🚀 We're officially launching on the @Hedera network, bringing more scalability and efficiency to AI governance. Learn more in our CEO's blog post. https://t.co/tIwtqmDXxO #ProveAI #AIGovernance #Hedera
— ProveAI (@ProveAI) October 22, 2024
Hedera Price Exploded But Has Since Stabilised
Canary Capital has already submitted applications for ETFs focused on Solana, XRP, and a spot Litecoin ETF, with its most recent filing for an HBAR ETF.
In October, the asset manager officially launched with the debut of its first trust product, the Canary HBAR Trust, a private offering for qualified investors to gain exposure to HBAR.
News of the HBAR ETF application sent the coin's price soaring, reaching $0.06764—a 21.34% rise in just 24 hours and a 50% increase over the past week.
Look at the #HBAR pump and compare with how #XRP ETF filing pump was !
— Normandy king (@KingNorman2718) November 12, 2024
Although HBAR has since stabilised around $0.06149, it remains up 6.23% in the last 24 hours and nearly 29% over the week, according to CoinMarketCap.
The long-term growth of HBAR depends on broader market trends and the ETF's approval prospects.
Analysts suggest that prior trust offerings often set the stage for ETF success, and with Canary Capital's HBAR Trust already tracking HBAR's price, the ETF application is a natural progression.
BREAKING: Canary Capital has submitted Form D for the #HBAR Trust to the SEC. pic.twitter.com/E8oLuyW70x
— Stephen (@cryptofabretti) October 9, 2024
Furthermore, Trump's recent election victory has reinvigorated optimism in the crypto sector, particularly with his intentions to potentially replace Gensler.
Many in the industry believe this shift could create a more favourable regulatory environment for crypto ETFs.
As the crypto revolution moves closer to mainstream acceptance, Canary Capital's initiatives raise intriguing questions: Could this aggressive push for crypto ETFs reshape the investment landscape, and how will regulatory changes under the Trump administration influence the future of crypto-based financial products?
