- Canary file for the first HBAR crypto ETF.
- Industry experts predict more applications will emerge amid regulatory changes.
Canary Capital just made first move toward filing Hedera [HBAR] Exchange Traded Fund (ETF) [ETF]. On November 12, the investment company filed the following report. S-1 form Together with the U.S. Securities and Exchange Commission (SEC), we have demonstrated our ambition to provide direct exposure to HBAR through ETFs.
Source: SEC
The filing excludes the use of derivatives or futures contracts linked to HBAR, keeping the assets outside the control of the U.S. Commodity Futures Trading Commission. [CFTC] clock. At this time, the company has not disclosed the exchange, custodian, or ticker symbol of the proposed ETF.
Canary HBAR ETF
Interestingly, this move was initiated by Canary in October HBAR Trust—America's First HBAR-Dedicated Investment Vehicle This private offering provides secure exposure to HBAR to accredited investors.
Notably, this is Canary's fourth ETF filing. Previous applications focused on other popular digital assets, including Ripple. [XRP]Solana [SOL]Litecoin [LTC].
HBAR ETF sparks debate in crypto community
Although unexpected, the filing prompted some interesting reactions from industry experts. Many see it as a timely response to changes in regulatory expectations resulting from Donald Trump's recent election victory.
Recently post Eric Balchunas, senior ETF analyst at Bloomberg, likens X to:
“The post-Trump spaghetti cannon is firing…”
The analyst hinted at the possibility of a wave of ETF proposals in the future, adding:
“Doge ETF is in stock on 3..2..1..”
Adding to the discussion, ETF Store President Nate Geraci said in a message to The Block that the filing highlights how some ETF issuers are anticipating changes in the regulatory dynamics of cryptocurrencies. It was suggested that this was an early sign of the future. The executive said:
“My prediction is that under the new Trump administration, issuers will become more aggressive in filing crypto-related ETFs in an effort to test the SEC.”
price reacts
After filing, HBAR showed a positive increase. At the time of writing, the stock was trading at $0.058, up 3.57% over the past day.
Additionally, it has risen by double digits over the past week, posting an increase of more than 19%. The market capitalization increased by 3.04% to $2.2 billion due to the price increase.
Trading activity surged significantly, with 24-hour trading volume increasing by 280% to $689.34 million. As per coin market capHBAR is ranked as the 45th crypto asset.
Outlook for HBAR ETF approval
In particular, the approval of spot ETFs related to HBAR remains uncertain. Recently, Bitcoin [BTC] and Ethereum [ETH] While the approval of ETFs represents progress, approval of further crypto assets is not guaranteed.
But Trump's victory puts the industry on a new pedestal. With Gary Gensler likely to be removed as SEC chairman, many analysts believe there is hope for crypto ETFs.
Canary Capital's HBAR ETF application therefore reflects the growing demand for diverse crypto-backed ETFs. If approved, it could set a precedent and encourage broader acceptance of alternative crypto assets in U.S. financial markets.
