- Canary files for the first HBAR crypto ETF.
- Industry experts predict more applications will come in amid regulatory shifts.
Canary Capital has just taken the first step towards filing a Hedera application [HBAR] exchange traded fund [ETF]. The investment firm submitted an application on November 12 S-1 form with the US Securities and Exchange Commission (SEC), signaling its ambition to provide direct exposure to HBAR through an ETF.
Source: SEC
The filing excludes the use of HBAR-linked derivatives or futures contracts, leaving the asset outside the U.S. Commodity Futures Trading Commission. [CFTC] watch. So far, the company has not disclosed an exchange, custodian or ticker symbol for the proposed ETF.
Canary HBAR ETF
Interestingly, this move follows the October launch of Canary HBAR Trust—the first dedicated HBAR investment vehicle in the US. The private offering provides qualified investors with secure exposure to HBAR.
It’s worth noting that this is Canary’s fourth ETF filing. Previous applications have targeted other popular digital assets, including Ripple [XRP]Solana [SOL]and Litecoin [LTC].
HBAR ETF sparks discussion in the crypto community
Although unexpected, the filing has generated interesting responses from industry experts. Many see it as a timely response to regulators’ changing expectations in the wake of Donald Trump’s recent election victory.
In the latter after at X, Bloomberg’s senior ETF analyst Eric Balchunas compared it to it
“The post-Trump spaghetti cannon is in force….”
The analyst hinted at a potential wave of ETF proposals to come, adding:
“Doge ETF incoming in 3.. 2.. 1..”
Adding to the discussion, Nate Geraci, president of the ETF Store, suggested in a message to The Block that this filing is an early signal of how significantly some ETF issuers anticipate shifts in crypto regulatory dynamics. The director noted:
“My expectation is that issuers will become increasingly aggressive with crypto-related ETF registrations in an effort to test the SEC under the new Trump administration.”
Price responds
After filing, HBAR saw a positive increase. At the time of writing, the stock was trading at $0.058, up 3.57% in the past day.
Moreover, the price rose by double digits last week, which amounts to a gain of more than 19%. The price increase increased the market capitalization to $2.20 billion, an increase of 3.04%.
Trading activity soared as 24-hour trading volume increased by 280%, registering at $689.34 million. According to CoinMarketCapHBAR ranked as the 45th largest crypto asset.
Approval Outlook for HBAR ETFs
In particular, the approval of a spot ETF linked to HBAR remains uncertain. While recent Bitcoin [BTC] and ether [ETH] ETF approvals show progress, further crypto assets are not guaranteed approval.
However, Trump’s victory has put the industry on a new pedestal. With the likely removal of Gary Gensler as SEC chairman, many analysts believe there is hope for crypto ETFs.
Canary Capital’s HBAR ETF filing thus reflects rising demand for a wide range of crypto-backed ETFs. If approved, it could set a precedent and encourage broader adoption of alternative crypto assets in US financial markets.
