Canary Capital has submitted a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) for its proposed HBAR ETF, following the amended S-1 registration statement filed earlier this month.
The filing aims to attain permission for Nasdaq to list and trade shares of the HBAR ETF.
Canary-From HBAR Trust to HBAR ETF
Canary’s pursuit of an HBAR ETF did not come out of nowhere. In October 2024, Canary Capital had already launched the Canary HBAR Trust to accredited investors as the first HBAR investment vehicle in the U.S. market.
Canary filed its initial S-1 registration statement to the SEC in late 2024, initiating its pursuit of an HBAR ETF. The move marked a significant milestone as the first attempt to create an ETF specifically focused on Hedera’s token.
Its approval could provide multiple benefits for investors, including:
- Regulated exposure to HBAR through a familiar investment vehicle
- Simplified access without the need for cryptocurrency wallets or exchanges
- Potential integration with existing investment portfolios
- Enhanced liquidity through exchange trading
The filing comes on the backdrop of approved Bitcoin ETFs with funds like Fidelity’s FBTC and BlackRock’s IBIT.
Is SEC Approval Possible?
In the past, the SEC has been skeptical about cryptocurrency exchange-traded funds (ETFs). It has underlined its strategy by closely examining every proposal to guarantee market integrity and investor protection.
However, recent approvals of Bitcoin spot ETFs indicate that the SEC’s stance is becoming more crypto-friendly. This demonstrates its readiness to accept Bitcoin investment products in appropriate situations.
Given the precedent created by Bitcoin ETFs and growing institutional interest, there is optimism regarding the potential approval of the ETF.
Approval could boost Hedera’s credibility among institutional investors, facilitating broader application of its technology.
