In a major move for the crypto market, Canary Capital has submitted an S-1 registration application to the U.S. Securities and Exchange Commission (SEC) for an HBAR exchange-traded fund (ETF). This ETF aims to provide investors with direct exposure to Hedera’s native token, HBAR. Following the announcement, HBAR’s price surged by nearly 20%, although it has since retracted in line with broader market sentiment. Here’s a closer look at the details.
Canary Capital’s HBAR ETF Application: A Game-Changer for Institutional Access
On Tuesday, Canary Capital filed an S-1 registration statement with the SEC for an HBAR ETF. This ETF would give investors access to the crypto asset’s market price, making it the first ETF proposal for Hedera. According to the filing, the fund intends to “offer exposure to the value of the native asset of the Hedera Network” and will hold only HBAR directly. However, no custodian or manager has been appointed for the fund as of yet.
This development comes as Canary Capital continues to expand institutional options for HBAR. In October, the firm launched an HBAR Trust targeting accredited investors. Previously, Canary Capital also submitted filings for ETFs covering other cryptocurrencies like Litecoin, Solana, and XRP. Hedera’s HBAR, known for its unique Hashgraph consensus algorithm, is utilized within the network for transaction fees, staking, and governance, allowing token holders to participate in key network decisions.
HBAR Price Reaction and Current Market Position
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Following the news, HBAR’s value spiked over 19%, pushing its weekly gains close to 50%. If approved, the ETF could further boost HBAR’s value. Currently, HBAR is trading at $0.056, down 3% from its peak of $0.064 within the last 24 hours. This recent price change reflects the broader crypto market pullback after Bitcoin’s brief surge toward $90,000.
The SEC’s likelihood of approving Canary Capital’s HBAR ETF application remains uncertain, especially amid recent developments and speculations surrounding regulatory leadership changes. President-elect Donald Trump has pledged to remove SEC Chair Gary Gensler on his first day in office, sparking rumors within the crypto community about potential shifts in SEC policy.
With the first-ever HBAR ETF application now in play, the market is closely watching how the SEC will respond and what impact this could have on HBAR’s future trajectory.
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