Nasdaq Seeks SEC Approval for Grayscale Hedera Trust (HBAR) ETF
Nasdaq has taken a significant step by filing a 19-b 4 form with the SEC to seek approval for listing and trading shares of Grayscale Hedera Trust (HBAR). This move marks a standard procedure in the process of obtaining approval for an exchange-traded fund (ETF) related to HBAR.
The shares have been classified by the exchange as Commodity-Based Trust Shares under Nasdaq Rule 5711(d), placing them in line with regulated investment vehicles such as spot Bitcoin (BTC) ETF.
The filing represents the latest development in the ongoing efforts to bring Hedera into the realm of regulated financial instruments. Submitted under Section 19(b)(1) of the Securities Exchange Act 1934, the proposal enables exchanges to request rule modifications for the listing of new financial products.
According to the filing, the proposed rule change aims to enhance competition among market participants for the benefit of investors and the marketplace, emphasizing the importance of a free and open market to protect investors and the public interest.
This move by Nasdaq follows a similar application made by Canary Capital, who is also seeking approval for an HBAR-based ETF. Canary Capital submitted an S-1 application in November 2024, followed by a 19b-4 application in February to advance its ETF approval process.
Both Grayscale's and Canary Capital's HBAR ETF proposals are currently in the preliminary review stage and have not yet been published in the Federal Register. The SEC is evaluating the filings for procedural and completeness requirements before proceeding to the next steps.
If approved, the Grayscale and Canary Capital HBAR ETFs would provide investors with a regulated avenue to gain exposure to HBAR without directly holding the asset, reflecting the increasing institutional interest in cryptocurrency-based investment products.
Despite a recent 10% price surge in HBAR following Nasdaq's filing for Canary Capital's ETF, the latest developments have not sparked a significant market response. As of the latest update, HBAR's trading price is at $0.23, experiencing a 6.8% decline over the past 24 hours. Despite this dip, HBAR has outperformed other smart contract platform cryptocurrencies, which collectively fell by 8.8%, according to CoinGecko.
The progress in securing approval for the Grayscale and Canary Capital HBAR ETFs underscores the growing recognition of cryptocurrency investment opportunities within traditional financial systems.