Key Takeaways
- Canary Capital has filed for a spot HBAR ETF with the SEC.
- The filing caused HBAR’s price to spike from $0.053 to $0.070 before correcting.
- A potential SEC leadership change could bring clearer crypto guidelines.
Asset management firm Canary Capital has filed for a spot exchange-traded fund (ETF) based on Hedera (HBAR) with the U.S. Securities and Exchange Commission (SEC).
The filing, submitted on Nov. 12, aims to offer investors direct exposure to the spot HBAR.
HBAR ETF Filing Caught Many by Surprise, Token Rallies
This marks the first spot ETF filing for HBAR, a relatively lesser-known crypto token, compared to recent filings for Solana, Litecoin, and XRP.
The move is part of a growing trend of altcoin-based spot ETF filings in 2024, following the approval of spot Ethereum ETFs in July.
The HBAR ETF filing caught many market pundits by surprise, including Bloomberg ETF analyst Eric Balchunas, who admitted to being unfamiliar with the token.
“I literally have to use Google to understand what it tracks. This was one of those times. The post-Trump spaghetti cannon in effect,” Balchunas wrote, underscoring the unexpected nature of the filing.
The news had an immediate impact on HBAR’s price. The token surged from a daily low of $0.053 to a high of $0.070 before stabilizing. While the price correction followed, the filing signaled growing interest in altcoins beyond Bitcoin and Ethereum.
A Shifting Regulatory Landscape
This filing also highlights the evolving regulatory landscape for cryptocurrencies in the U.S.
Following a shift in political support for digital assets, the Trump administration, expected to take office again in 2025, is poised to introduce major regulatory reforms.
These reforms aim to provide clearer guidelines for the crypto sector and help establish the U.S. as a global crypto hub.
With SEC Chairman Gary Gensler’s anticipated departure, the new chair could prioritize a more balanced approach to overseeing crypto markets.
The Growing Popularity of Spot Crypto ETFs
The SEC has already approved a significant number of spot crypto ETFs in 2024.
In January, the agency approved 11 spot Bitcoin ETFs, and in July, it followed up with approval for eight spot Ethereum ETFs.
While the approval of Bitcoin-based spot ETFs was largely expected, the green light for an Ethereum spot ETF came as a surprise, especially amid ongoing debates over whether ETH should be classified as a security.
These approvals have paved the way for other altcoin-based ETFs.
Canary Capital, for instance, filed for spot Solana and XRP ETFs in October, furthering the trend.
There is growing speculation that the approval of spot ETFs for Bitcoin and Ethereum supports the notion that these cryptocurrencies qualify as asset classes rather than securities.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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