Canary Capital files for first HBAR Spot ETF with SEC

Canary Capital has officially filed an S-1 registration with the U.S. SEC for an exchange-traded fund centered on Hedera’s HBAR token. 

If approved, this would be the first HBAR (HBAR) spot ETF, allowing investors to gain exposure to the value of HBAR, the native token of the Hedera network, according to the filing. 

An S-1 registration is the SEC’s standard filing for companies planning to go public or offer investment products, such as an ETF. 

In the context of Canary’s application, this means the firm seeks to list its HBAR fund on a public exchange, offering a regulated way for investors to gain exposure to HBAR’s value without directly purchasing or holding the cryptocurrency. 

The ETF would track the price of HBAR by holding the token directly, without derivatives or futures contracts.

Canary Capital and HBAR

HBAR, the core asset of the Hedera network, powers decentralized applications and facilitates global transactions on its platform. 

The Hedera network uses the Hashgraph consensus algorithm and is governed by prominent corporations and organizations to ensure transparency and security. HBAR serves several roles within the Hedera ecosystem, from transaction facilitation to network governance.

To manage the fund, Canary Capital’s ETF structure includes “Authorized Participants” to handle the creation and redemption of shares, a model commonly used for crypto-based investment funds. 

The filing indicates that HBAR assets will be securely held in custodial accounts, with some in “cold storage” across secure, geographically separated locations.

Earlier this year, Canary launched the first U.S.-based HBAR Trust, which provided institutional investors with access to Hedera’s native cryptocurrency. The trust targeted accredited investors looking for advanced crypto investment opportunities.

This filing comes as Canary Capital pursues similar ETFs focused on other cryptocurrencies, such as Litecoin.