Nasdaq Asks SEC Approval for Canary HBAR ETF Listing
Officially, Nasdaq has applied to the U.S. Securities and Exchange Commission (SEC) to list the Canary HBAR ETF, therefore granting investors controlled access to the native cryptocurrency, HBAR. Reflecting rising institutional interest in digital assets, this file adds to the growing number of applications requesting clearance for cryptocurrency-based exchange-traded funds (ETFs).
Filings for Crypto ETF Soar
Originally applying in November, Canary Capital, the asset management behind the planned ETF, The fund tracks HBAR’s performance so that investors may use a regulated financial product to expose to Hedera’s distributed ledger technology. Before trading starts, the SEC has to check over and approve the application.
Legal Changes and Market Anticipations
Particularly after legislative changes under the current U.S. government, the SEC’s attitude on cryptocurrency ETFs has changed significantly. Two fresh crypto index ETFs joined the market in February: the Nasdaq Crypto Index US ETF (NCIQ) from Hashdex and Franklin Templeton’s fund holding both Bitcoin and Ether. Reflecting a shifting regulatory environment, analysts project additional approvals in the not-too-distant future.
While Litecoin and Solana ETFs have much better odds—estimated at 90% and 70%, respectively—Bloomberg Intelligence has pegged the likelihood of an XRP ETF approval at 65%. With no formal estimate yet given, the likelihood of an HBAR ETF approval is still unknown.
The Prospect of Crypto ETFs
Under former regulatory leadership, the SEC launched several legal cases against crypto companies over claimed securities law violations and opposed broad expansion of crypto ETF alternatives. But the licensing of spot Bitcoin and Ether ETFs in 2024 marks a turning point; the agency is now under increased demand to approve other altcoin-based vehicles.
Should Nasdaq’s application for the Canary HBAR ETF be accepted, more general institutional acceptance of cryptocurrency investment products could follow. Expected in the next months are regulatory decisions; thus, market players are attentively observing how the SEC will negotiate this fast-changing terrain.
