Canary Capital’s recent registration for a spot Hedera (HBAR) ETF has startled many in the crypto sector, as it represents a significant step toward broadening the range of crypto ETFs available to US investors.
In an unexpected move, investment firm Canary Capital has sought to launch a spot exchange-traded fund (ETF) linked to HBAR, the Hedera blockchain’s native token. Canary Capital submitted this filing to the United States Securities and Exchange Commission (SEC) on November 12, 2024, expanding its portfolio of crypto-related ETFs to include Solana, XRP, and Litecoin.
While Hedera is not as well-known in major crypto markets, Canary’s suggestion demonstrates trust in the token’s potential, despite its relative obscurity in comparison to other more visible assets. The business has stated that the ETF will provide direct exposure to HBAR without using derivatives or futures contracts, avoiding regulatory scrutiny from the Commodity Futures Trading Commission (CFTC).
The filing follows Canary’s successful launch of a private HBAR Trust for eligible investors earlier in October. With HBAR’s market capitalization of about $2.5 billion at the time of the filing, Canary Capital is positioning itself as a prominent player in crypto asset management.
Although the proposal for a spot HBAR ETF surprised many observers, it represents Canary Capital’s aim to capitalize on the increased interest in crypto ETFs, particularly in light of future changes in US political leadership. Many people believe that a more crypto-friendly regulatory environment is on the way, especially with the expected shift in government following the 2024 elections.
The price of HBAR has already increased by 21% in just 24 hours following the revelation.
