- The SEC has launched a formal review of the Canary HBAR ETF proposal, focusing on market integrity and investor protection.
- If approved, the ETF would mark the first U.S.-listed fund offering direct exposure to Hedera’s HBAR.
The Canary HBAR ETF is now under formal review by the U.S. Securities and Exchange Commission (SEC). The review will determine whether Nasdaq’s proposal to list the commodity-based trust, backed by Hedera’s native token HBAR, meets the standards for listing under Rule 5711(d).
SEC Opens Formal Review, Sets Deadline for Comments
In a recent report, we covered the US Securities and Exchange Commission’s move by postponing its decision on HBAR ETF, the native currency of Hedera’s hashgraph distributed ledger.
Based on new developments, the SEC published a notice on June 16 confirming that it has not approved or denied the listing but has moved the application into a deeper review phase.
This means the proposal, initially filed by Nasdaq with an amendment, will now be scrutinized further based on public input and regulatory criteria.
If approved, the Canary HBAR ETF would allow U.S. investors to gain direct exposure to the Hedera coin through traditional markets. The ETF is designed to be physically backed by HBAR, making it the first of its kind in the country.
It is essential to state that the fund sponsor is Canary Capital Group. BitGo and Coinbase Custody will share custody of the assets. The ETF’s benchmark is the CoinDesk Hedera USD Index.
Redemption will be allowed in blocks of 10,000 shares, either in cash or in-kind. Investors, stakeholders, and members of the public have until July 7, 2025, to submit comments. Rebuttals can be filed by July 21, 2025.
The SEC stated it needs to assess whether the product is designed to resist market manipulation and if it meets investor protection standards. Adequate liquidity, pricing transparency, and surveillance mechanisms are also key issues in the ongoing review.
Meanwhile, as mentioned in our previous news article, the US SEC has acknowledged receipt of a staked Tron Exchange Traded Fund (ETF) application filed by Canary Capital.
HBAR ETF Could Open Path for Institutional Access to Hedera
It is worth mentioning that if approved, the Canary HBAR ETF would represent a significant milestone in the Hedera network’s institutional journey. Unlike Bitcoin or Ethereum, despite its growing ecosystem, HBAR has not yet featured prominently in mainstream finance.
Despite the obvious prospect, HBAR price is down 8% in 24 hours to $0.1492.
This review process mirrors other altcoin ETF filings, such as those for DOGE and DOT. The SEC has taken a cautious stance on crypto-backed products, often pushing decisions into extended comment periods.
Still, the possibility of a regulated, exchange-listed HBAR ETF signals growing interest in giving investors structured access to alternative blockchain assets. The outcome of this review could also set the tone for future Hedera-related investment products.
As noted in our previous news brief, a tweet by Degen News disclosed that the SEC has given issuers a week to submit revised S-1 forms for Solana ETF Prospects. Per the update, the price of Solana increased by 6% to $165 as broader market sentiment turned bullish.
