Canary Capital Group filed an S-1 registration statement on November 12 with the U.S. Securities and Exchange Commission for an HBAR ETF. The HBAR exchange-traded fund will track the native assets of the Hedera network. According to the filing, the firm intends to “provide exposure to the value of the native asset of the Hedera network.”
Nate Geraci, president of the ETF Store, said in a message that Canary Capital’s filing on Tuesday could be indicative of how firms expect crypto regulations to change under the new administration. Gerasi said, “My expectation is that issuers will grow increasingly aggressive with crypto-related ETF filings in an attempt to test out the SEC under the new Trump administration.”
Canary Capital wants investors to gain exposure to HBAR ETF
🚨NEW: @CanaryFunds has filed an S1 with the @SECGov to launch an $HBAR ETF.
This comes following Canary’s launch of its $HBAR Trust in October. pic.twitter.com/9NyvUpWXil
— Eleanor Terrett (@EleanorTerrett) November 12, 2024
The filing indicates that the HBAR ETF will provide investors with a convenient and regulated way to gain exposure to HBAR, the native digital asset of the Hedera network. The HBAR ETF will also act as a structured investment vehicle that seeks to draw both institutional and retail investors interested in the potential of the Hedera network.
HBAR is the native cryptocurrency of the Hedera network, which is governed by a council of companies and organizations. The Hedera network argues that they maintain this governance model to ensure decision-making and token distribution are conducted securely and compliantly. HBAR wants to utilize the Hedera network to power decentralized applications, facilitate transactions, and participate in network governance.
The filing also mentions that the HBAR ETF intends to hold any HBAR directly without using derivatives, futures, or other financial instruments. However, the firm does not mention either a custodian or an administrator.
Canary’s CEO Steven McClurg wants to transform the Hedera network
According to Steven McClurg, former co-founder and Chief Executive Officer at Canary Capital, they founded Canary Capital to lead the way for the next iteration of actively managed crypto offerings with a focus on risk management and adaptive, strategic foresight.
McClurg said last month, “The accelerating demand for crypto offerings seems to be exponential since this year’s launch of Spot Bitcoin ETFs, yet there remains a gap regarding firms with institutional experience who are willing to continue to innovate and deliver solutions beyond retail products.”
Canary Capital launched an HBAR Trust last month for accredited investors meant to pave the way for future ETF HBAR-focused investment vehicles. McClurg has also founded Valkyrie Funds, which has other spot crypto ETFs. The firm previously filed registration statements for a spot Litecoin ETF, a Solana ETF, and an XRP ETF.
The establishment of an HBAR ETF could potentially boost liquidity and market participation so that investors can engage with the Hedera network’s innovative solutions. Data from Coinmarketcap indicates that HBAR’s price is up 20% amid the filing for an HBAR ETF application.
Nonetheless, the firm’s application request is still under review, and if approved, it could enhance the adoption of Hedera’s ecosystem.
On the other hand, it is unclear whether the U.S. SEC would approve more spot crypto ETFs at the moment. That’s because there is an increased likelihood that the current Chair, Gary Gensler, could decide to step down since President-elect Donald Trump said he would “fire Gensler if elected.”
In an interview with CNBC, Gensler said, “We have other filings in front of us, but I’m not going to prejudge it for you or the audience. That’s something that a five-member commission discusses and reviews.”
