Canary Capital Advances HBAR ETF Proposal With SEC Filing

According to ShibDaily, Canary Capital, a digital asset investment firm, has made significant progress in its efforts to launch a new exchange-traded fund (ETF) linked to Hedera's native utility token, HBAR. The firm has submitted an S-1 registration with the U.S. Securities and Exchange Commission (SEC), a crucial step in the ETF approval process. This move has generated considerable interest and speculation within the cryptocurrency community, as noted by Senior Bloomberg ETF analyst Eric Balchunas and Fox Business reporter Eleanor Terret. The S-1 submission is an initial milestone in the process of launching the HBAR ETF. The next step for Canary Capital involves completing a 19b-4 filing, which will propose the necessary regulatory changes to list the fund on an exchange. The proposed HBAR ETF aims to provide investors with direct exposure to the altcoin, following the successful model established by Bitcoin ETFs such as Fidelity's FBTC and BlackRock's IBIT. Balchunas highlighted that Canary Capital submitted an amended S-1 for its HBAR ETF, a rare move typically made in response to SEC feedback. This mirrors a similar adjustment made with a Litecoin ETF, emphasizing the importance of the 19b-4 filing for advancing the process. Canary Capital has previously received formal recognition from the SEC for a Litecoin ETF, making it the first altcoin fund, aside from Ethereum, to achieve such acknowledgment. This milestone sets a regulatory deadline for the SEC to either approve or reject the proposal, potentially transforming how investors access cryptocurrency markets. Despite the promising development of the revised S-1 filing, the essential Form 19b-4, required for ETF approval and submitted by the listing exchange, remains pending. This outstanding step indicates that the HBAR ETF still faces significant regulatory hurdles before it can be launched. The investment firm's decision to replicate its Litecoin ETF process may suggest improved proficiency and streamlined operations in navigating regulatory complexities. However, the SEC continues to adopt a cautious stance toward cryptocurrency ETFs. Canary Capital's initiative coincides with a series of developments at the SEC, including an increase in new ETF applications, the establishment of a specialized unit to address crypto fraud and cybercrime, and the potential initiation of a probe by Elon Musk's Department of Government Efficiency (DOGE). This article is intended for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.