Grayscale Files to List Its Hedera (HBAR) Exchange-Traded Fund (ETF) on Nasdaq

Nasdaq has submitted a key 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) to list Grayscale's spot Hedera exchange-traded fund (ETF).

Nasdaq has submitted a key 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) for listing Grayscale’s spot Hedera exchange-traded fund (ETF). This filing is part of a two-step process.

Once acknowledged by the SEC, the filing will be published in the Federal Register, kicking off the approval stage.

Grayscale, a renowned crypto investment firm, is expanding its product portfolio with the Hedera ETF. The company aims to develop an ETF that closely follows the price movements of HBAR and provides investors with the opportunity to invest in the asset without needing to hold it directly. If approved, the Hedera ETF will be available for trading on the Nasdaq exchange.

The 19b-4 filing is a crucial step in the process of securing approval from the SEC for any crypto ETF. While Grayscale is diligently pursuing the approval of its Hedera ETF, it is noteworthy that another company, Canary Capital, has already submitted an application for an HBAR ETF, which was accepted last week.

This filing marks a significant development, considering the SEC has faced criticism for delaying the approval of spot Bitcoin and Ethereum ETFs despite their approval earlier this year. However, in recent months, the SEC has swiftly approved several crypto ETFs, setting the stage for a broader rollout of digital asset investment products.

Moreover, the SEC has also reached a settlement with Kraken over its crypto staking activities, another key area of focus for the regulator.

This development follows closely on the heels of Canary Capital’s 19b-4 submission last week for its own spot HBAR ETF. Eric Balchunas, Senior ETF Analyst at Bloomberg, has suggested that Hedera and Litecoin are at the forefront among altcoins for potential ETF approval.

Contrary to popular belief, HBAR is not a blockchain but rather a decentralized public network that leverages the Hashgraph consensus algorithm, renowned for its speed and efficiency in processing transactions. The network is governed by a council composed of prominent organizations such as Google and IBM. The Hedera token, HBAR, plays a vital role in facilitating transactions across the network and powers the network’s applications.

This move follows Grayscale’s earlier submissions for ETFs focusing on other cryptocurrencies, including Cardano, Solana, and XRP, all of which are awaiting approval from the SEC. Grayscale has a strong track record with the SEC, having successfully argued for the approval of spot Bitcoin and Ethereum ETFs in recent months. This success has instilled greater confidence in the firm’s pursuit of securing approval for its altcoin-based ETFs.

In addition to Grayscale, other asset managers, such as Rex-Osprey and Tuttle Capital, are also seeking approval from the SEC for crypto ETFs, including one that tracks the price of Dogecoin.

Despite the promising prospects for major altcoins like XRP and Solana to be included in ETFs, the likelihood of memecoin ETFs or an ETF tracking the Shiba Inu token (SHIB) appears slim at best.