Canary Capital Filed for a Spot HBAR ETF – Will It Be Approved?

Nasdaq filed Form 19b-4 with the U.S. Securities and Exchange Commission (SEC) to list and trade the Canary HBAR ETF. If approved, this exchange-traded fund (ETF) will track the spot price of Hedera’s native cryptocurrency, HBAR, offering investors direct exposure to the asset.

This move follows Canary Capital’s launch of the first U.S. HBAR Trust in October 2024 and an S-1 registration for an HBAR ETF in November 2024. With both filings now under SEC review, a spot HBAR ETF may be on the horizon.

Why does this matter?

• The S-1 form is required for securities registration.

• The 19b-4 form signals that Nasdaq wants to list the ETF.

• SEC approval of both would allow public trading of the Canary HBAR ETF.

Why Hedera (HBAR) and Why Now?

Hedera’s fundamentals make it a strong candidate for a spot ETF. Unlike many cryptocurrencies, HBAR is not classified as a security by the SEC.

According to Canary Capital CEO Steven McClurg, HBAR’s high transaction volume and enterprise adoption were key reasons for launching the ETF. Hedera’s governing council, which includes companies like Google, IBM, and Boeing, adds further credibility.

Key factors supporting an HBAR ETF:

• Regulatory clarity – HBAR is not considered a security.

• Enterprise adoption – Companies use Hedera for real-world applications.

The SEC has been cautious about approving crypto ETFs, with most approvals so far limited to Bitcoin and Ethereum. However, 2025 is shaping up to be the year of altcoin ETFs.

In December 2024, Bloomberg analyst Eric Balchunas predicted a wave of altcoin ETF applications. He pointed to HBAR as a frontrunner, alongside Litecoin (LTC), since both assets lack SEC regulatory disputes.

Canary’s Growing Crypto ETF Portfolio

Canary Capital is expanding beyond HBAR. The firm has also filed for spot ETFs for Litecoin (LTC), XRP, and Solana (SOL).

• Litecoin ETF (LTCC): Currently under SEC review with a 90% chance of approval, according to Bloomberg analysts.

• XRP ETF: The SEC has accepted the filing, a step toward potential approval.

• Solana ETF: Still in the early stages but gaining traction.

Hedera’s Growing Institutional Presence

Although HBAR has limited U.S. exposure, Europe has seen the launch of HBAR-based exchange-traded products (ETPs):

• Valour Digital Securities launched an HBAR ETP on the Frankfurt Stock Exchange.

• A second listing on Euronext Amsterdam followed soon after.

While these products indicate growing demand, a U.S.-listed spot ETF would bring HBAR to a much wider audience.

While the SEC has yet to approve any spot altcoin ETFs, HBAR’s regulatory clarity and institutional backing could give it an edge.

If approved, the Canary HBAR ETF would:

• Provide mainstream investors direct exposure to HBAR.

• Boost liquidity and adoption of Hedera’s network.

• Pave the way for more altcoin ETFs in the future.

With Nasdaq’s 19b-4 filing now under SEC review, all eyes are on whether HBAR will be among the first altcoin ETFs to gain approval in 2025.