Canary Capital Files for First Hedera (HBAR) Spot ETF with SEC: Will It Be Approved?
Shayan Chowdhury13 Nov 20242 min read
It seems that the hype surrounding ETFs is back again following Donald Trump’s comeback as another spot ETF filing was submitted after XRP. Canary Capital has submitted an S-1 registration with the U.S. Securities and Exchange Commission to launch the first-ever Hedera (HBAR) spot exchange-traded fund (ETF). This ETF aims to provide investors with direct exposure to HBAR, the native asset of the Hedera Network.
Canary Explores Buying Demand in HBAR
Canary Capital has filed an S-1 registration with the U.S. SEC to launch an exchange-traded fund (ETF) focused on Hedera’s HBAR token. If approved, this would be the first ETF allowing investors to gain exposure to HBAR, Hedera’s native token, on a public exchange.
An S-1 is the SEC’s standard filing for companies looking to go public or offer investment products like an ETF. This would let investors access HBAR’s value in a regulated way, without needing to directly buy or hold the token.
HBAR is the native cryptocurrency of the Hedera network, which utilizes the Hashgraph consensus algorithm to operate as a decentralized public network. Hedera enables rapid and secure global transactions and is overseen by a council comprising notable companies and organizations.
This governance structure aims to ensure secure, compliant decision-making and token distribution. HBAR supports various functions within the Hedera ecosystem, such as powering decentralized applications, enabling transactions, and improving network governance.
The Canary HBAR ETF, as outlined in its S-1 filing, plans to only invest in HBAR without employing derivatives, futures, or other financial instruments. The filing does not specify a custodian or administrator.
Canary Capital, founded by Steven McClurg—who also established Valkyrie Funds known for its spot crypto ETFs—previously launched an HBAR Trust in October for accredited investors. Additionally, Canary Capital has filed for registration of other spot cryptocurrency ETFs, including for Litecoin, Solana, and XRP.
What’s Going Between Trump and SEC?
The approval of additional spot crypto ETFs by the SEC remains uncertain. Earlier in the year, the agency sanctioned 11 spot bitcoin ETFs and subsequently approved eight Ethereum ETFs.
These filings are submitted as speculation grows that Gary Gensler, the current SEC Chair known for his critical views on cryptocurrencies, might resign ahead of the incoming presidential administration. The President-elect, Donald Trump, has also expressed intentions to dismiss Gensler if he assumes office.
Representatives for Trump are reportedly evaluating potential candidates for the SEC chairmanship, including Robinhood’s Chief Legal Officer Dan Gallagher, former Republican SEC commissioner Paul Atkins, and Robert Stebbins, a former SEC general counsel.
However, experts point out that Trump cannot legally remove Gensler from his position without a valid reason. While it is common for regulators to resign following a shift in the political scene at the White House, there has been no indication from the SEC chair that he intends to step down.
