Michaela
Canary Capital, a digital asset investment firm, has taken a major step toward launching a new ETF by submitting an S-1 registration with the SEC. This would tie the fund to Hedera’s native utility token, HBAR.
Key Points
- Canary Capital, a digital asset investment firm, has taken a major step toward launching a new ETF by submitting an S-1 registration with the SEC
- This would tie the fund to Hedera’s native utility token, HBAR
- Senior Bloomberg ETF analyst Eric Balchunas and Fox Business reporter Eleanor Terret noted that the filing stirred significant interest and triggered a wave of speculation across the crypto community
Senior Bloomberg ETF analyst Eric Balchunas and Fox Business reporter Eleanor Terret noted that the filing stirred significant interest and triggered a wave of speculation across the crypto community.
The S-1 submission marks a key initial milestone in launching the HBAR ETF. Next, the firm must complete a 19b-4 filing, which will propose the regulatory changes needed to list the fund on an exchange.
The proposed HBAR ETF aims to give investors direct exposure to the altcoin, building on the successful blueprint set by Bitcoin ETFs, like Fidelity’s FBTC and BlackRock’s IBIT.
Related: SEC Halts 3–5x Leveraged Crypto ETFs, Warning Investors of Risks
Balchunas noted that Canary Capital submitted an amended S-1 for its HBAR ETF — a move that is uncommon since such changes usually follow SEC feedback. He added that this mirrors a similar adjustment made with Litecoin’s ETF and stressed that a 19b-4 filing, essential for moving the process forward, has not yet been made.
Canary Capital and the SEC
Canary Capital previously earned a formal recognition from the SEC for a Litecoin ETF. Notably, aside from Ethereum, it is the first altcoin fund to receive such acknowledgment. This milestone now sets a regulatory deadline for the SEC to either approve or reject the proposal — an approval that could transform how investors access cryptocurrency markets.
While the revised S-1 filing is a promising development, the essential Form 19b-4 — required for ETF approval and submitted by the listing exchange — remains outstanding. This pending step means the HBAR ETF still faces significant regulatory challenges before it can be launched.
Related: Strategy Sells $1.4B in Stock to Cover Bills Amid Bitcoin Slump
The investment firm’s decision to mirror its Litecoin ETF process may signal enhanced proficiency and streamlined operations in navigating regulatory complexities. Nevertheless, the SEC maintains a cautious approach toward cryptocurrency ETFs.
Canary Capital’s move comes amid a series of developments at the SEC, including a surge in new ETF applications, the creation of a specialized unit to combat crypto fraud and cybercrime, and the potential initiation of a probe by Elon Musk’s Department of Government Efficiency (DOGE).
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
