Canary Capital has filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for its HBAR exchange-traded fund (ETF). The ETF aims to provide investors with exposure to Hedera’s altcoin project called HBAR. Following the announcement, HBAR gained almost 20 percent in value. At the time of writing, it is falling in line with the general sentiment in the market. Here are all the details…
Canary Capital filed an ETF application for the altcoin HBAR
Canary Capital filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) on Tuesday for its HBAR exchange-traded fund (ETF). The ETF will give investors access to the price of the crypto asset. Canary Capital filed an S-1 registration statement with the SEC on Tuesday for its Hedera HBAR spot exchange-traded fund (ETF). This is the first time an asset manager has proposed an ETF for HBAR. The filing states that the fund aims to “provide access to the value of the native asset of the Hedera Network.” Canary Capital’s S-1 filing also reveals that the HBAR ETF plans to hold only HBAR directly. However, no custodian or manager has been named for the fund.
Notably, Canary Capital introduced an HBAR Trust targeting accredited investors last October. The firm has also previously filed registration statements to launch Litecoin, Solana, and XRP ETFs. This initiative expands the options for institutional investors to access HBAR. HBAR is the native token of the Hedera Network, an open-source public ledger that uses a unique Hashgraph consensus algorithm. The altcoin is used for transaction fees, staking, and governance, allowing holders to participate in network decisions.
What’s the latest on HBAR?
HBAR surged more than 19 percent following the news, bringing its weekly gains close to 50 percent. If the ETF approval is granted, the token could gain even more value. However, at the time of writing, the cryptocurrency is trading at $0.056, down 3%. This is well below its previous high of $0.064 in the last 24 hours. However, the price change is being affected by Bitcoin’s sell-off after its record high of $90,000.
Given recent developments and rumors, the SEC’s chances of approving Canary Capital’s HBAR ETF S-1 application are uncertain. These include President-elect Donald Trump’s promise to fire SEC Chairman Gary Gensler on his first day in office. Members of the crypto community are also discussing rumors that Gensler could resign before the end of his term.
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