On November 12, asset management firm Canary Capital officially submitted a filing to the U.S. Securities and Exchange Commission (SEC) proposing the establishment of the first ETF for the digital currency Hedera (HBAR).
HBAR is the primary currency of the Hedera blockchain ecosystem. With its unique Hashgraph consensus mechanism, HBAR plays a crucial role in covering transaction fees, supporting application development, and participating in network governance. According to the proposal, Canary Capital will directly hold HBAR as collateral for ETF shares; however, details regarding the exchange listing and custody partner have not yet been disclosed.
Notably, this is not the first time Canary Capital has ventured into the cryptocurrency ETF market. Earlier in October, the firm applied for ETFs for three other digital assets: XRP, Solana (SOL), and Litecoin (LTC).
Related: Canary Capital Officially Files for Solana ETF
Many experts suggest that a company willing to propose an ETF for a lesser-known asset like HBAR may indicate that Wall Street is increasingly optimistic about a more crypto-friendly regulatory environment under President Trump’s administration.
This news has had a positive impact on HBAR’s price. On the evening of November 12, its price surged to $0.07 before a slight correction, currently trading around the $0.06 mark.
To date, the SEC has only approved 11 Bitcoin ETFs and 9 Ethereum ETFs. The agency has yet to signal an intent to expand approvals to other cryptocurrencies, while many digital assets remain under SEC watch.
