KeyTakeaways:
- Canary Capital files 19b-4 for Hedera HBAR ETF, advancing SEC approval process.
- Hedera’s governance by major corporations distinguishes it from other cryptocurrencies.
- Bloomberg analysts predict a 90% approval chance for Litecoin ETFs, boosting HBAR’s odds.
On Monday, Canary Capital submitted a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) for a spot exchange-traded fund (ETF) that will track the value of Hedera’s native asset, HBAR.
This comes as a step in bringing a Hedera-focused ETF to market, following the firm’s earlier submission of the S-1 registration statement in November. The filing marks the second phase in the two-step procedure for proposing a crypto ETF, signaling a closer move toward potential approval from the SEC.
The 19b-4 filing is essential to the application process for a new exchange-traded product, specifically for crypto ETFs. Once the SEC acknowledges the filing, it will be published in the Federal Register, starting the formal review and approval process.
The firm’s S-1 registration statement, filed in November 2024, initially outlined its intent to create an ETF that provides exposure to the Hedera network. However, this latest filing focuses on the regulatory steps required for SEC consideration.
Hedera Network and its Token
Hedera operates as a decentralized public network utilizing the Hashgraph consensus algorithm, which is known for facilitating quick and secure global transactions. The Hedera network is distinct because it is governed by a council of major corporations and organizations, each responsible for major decisions such as network protocol and token distribution.
While Hedera is not intended to serve as a traditional payment system or store of value like many other public blockchains, its native cryptocurrency, HBAR, is basic to its operations. It incentivizes consensus and network activity, playing an important role in Hedera’s functionality.
Adding to this sentiment, Bloomberg’s Eric Balchunas noted that the recent S-1 filing amendment for the Canary HBAR ETF and the 19b-4 submission places Hedera and Litecoin in the spotlight for ETF approval. Analysts at Bloomberg have recently projected a 90% chance of approval for Litecoin ETFs, highlighting a positive outlook for other altcoin-based ETFs in the coming months.
With the S-1 registration being amended in response to SEC comments, Canary Capital’s HBAR ETF’s outlook is strengthened, giving it an edge in the current wave of altcoin ETF applications.
