Canary Capital applies to launch spot HBAR exchange-traded product

As a seasoned analyst with over two decades of experience in the financial markets, I find the recent move by Canary Capital to list its Hedera exchange-traded fund (ETF) intriguing. Having witnessed the evolution of the crypto market and the SEC’s stance on these products, I am cautiously optimistic about this development.


Canary Capital submitted paperwork to the U.S. Securities and Exchange Commission (SEC) to make available for trading the stocks of their Hedera-based exchange-traded fund (ETF).

In a filing dated November 12th, Canary requested that SEC officials examine its Form S-1 registration statement for approval. This document proposed allowing American investors to trade shares of the Canary Hedera (HBAR) ETF trust on an unspecified exchange. If approved, this would be one of the first investment vehicles offering investors direct exposure to a HBAR spot exchange-traded product. Additionally, Canary has applied for permission to list and trade both spot XRP and Solana ETFs as well.

Canary Capital applies to launch spot HBAR exchange-traded product

The filing indicates that this investment vehicle will avoid utilizing instruments tied to HBAR, such as derivatives or future contracts, to ensure they stay outside the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC). At this point, Canary has not specified an exchange for listing, a custodian, or a ticker symbol.

At the point when this article was published, the value of HBAR, the digital currency associated with the Hedera network, surpassed $2.5 billion in market capitalization and was trading around $0.07. Canary initiated the HBAR Trust on October 1, offering it as a private sale to eligible investors.

SEC soon under new leadership?

It remains uncertain if the commission will allow cryptocurrency ETFs linked to other assets like Bitcoin (BTC) and Ether (ETH) to be listed for trading on US exchanges after the approval of their counterparts in January and May. Following the November 5th election, Republicans are set to take control of both the legislative and executive branches in the US starting from January. President-elect Donald Trump has expressed his intention to dismiss SEC Chair Gary Gensler.

However, despite the criticism by many in the industry over his seeming “regulation by enforcement” approach to crypto, Gensler also voted for approving spot BTC ETFs. The SEC’s Trading and Markets Division signed off on spot Ether ETFs.

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2024-11-12 22:47