Canary Capital applies to launch spot HBAR exchange-traded product
Investment firm Canary Capital filed with the United States Securities and Exchange Commission (SEC) to list and trade shares of its spot Hedera exchange-traded fund, or ETF.
In a Nov. 12 filing, Canary submitted a Form S-1 registration statement to SEC officials for review, proposing the commission allow US investors to trade shares of its Canary Hedera ( HBAR ) ETF trust on an unnamed exchange. The proposed investment vehicle was one of the first to offer investors exposure to a spot HBAR exchange-traded product, though the asset manager has also applied to list and trade spot XRP and Solana ETFs.
Source: SEC
According to the filing, the investment vehicle will not use HBAR-linked derivatives or futures contracts that could put the asset manager within the purview of the US Commodity Futures Trading Commission. Canary did not name an exchange for a listing nor a custodian or ticker symbol.
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HBAR, the native crypto asset of the Hedera network, had a market capitalization of more than $2.5 billion at the time of publication, trading at a price of roughly $0.07. Canary launched the HBAR Trust on Oct. 1 as a private offering to qualified investors.
SEC soon under new leadership?
It’s unclear whether the commission will approve listing and trading of spot ETFs tied to other crypto assets on US exchanges following the approval of Bitcoin ( BTC ) and Ether ( ETH ) ETFs in January and May, respectively. Following a Nov. 5 election in the US, Republicans will have control of the legislative and executive branches of government starting in January, with President-elect Donald Trump pledging to fire SEC Chair Gary Gensler.
However, despite the criticism by many in the industry over his seeming “regulation by enforcement” approach to crypto, Gensler also voted for approving spot BTC ETFs. The SEC’s Trading and Markets Division signed off on spot Ether ETFs.
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