Grayscale Files for Listing of Its Hedera (HBAR) ETF Product on Nasdaq

On March 11, the U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale's proposal to list its Hedera ETF on Nasdaq. This move signals a step forward but

The U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale’s proposal to list its Hedera ETF on Nasdaq. The SEC is now inviting public comments for 21 days on the proposed exchange-traded fund (ETF).

The commission began a 21-day period of comment on March 11, specifically soliciting feedback on Grayscale’s application to list and trade shares of Grayscale Hedera Trust on the Nasdaq Stock Market.

If approved, the Hedera ETF will be Grayscale’s sixth altcoin-based investment product. It is currently managing five crypto trusts, including Bitcoin Trust, Ethereum Trust, Litecoin Trust, and Stellar Lumens Trust.

Those trusts are already listed on major exchanges, and the firm is also seeking approval for an Ethereum futures ETF.

What Is Hedera Hashgraph?

Hedera is a distributed ledger technology (DLT) platform that uses the hashgraph consensus algorithm. It is a layer-1 blockchain network, similar to Bitcoin and Ethereum.

The Hedera network is powered by the HERA token, which is used for paying fees and securing the network. HERA is an abbreviation for Hashgraph, Enterprise, Records, and Atomic.

According to CoinMarketCap, Hedera is the 14th largest cryptocurrency with a market cap of $8.28 billion at the time of writing. It is currently trading at $0.197 with a 24-hour volume of $591.8 million.

The price of HERA has increased by 3.57% in the past 24 hours, but it is down 18.29% over the past week. The circulating supply of HERA is 42 billion tokens out of a total supply of 50 billion.

CoinCodex's price prediction models estimate that HBAR could reach $0.2305 by the end of March if the market follows an uptrend. The listing of the Grayscale Hedera ETF on Nasdaq could be a catalyst for further price gains.

SEC Seeks Feedback on Hedera ETF

The SEC’s acknowledgment of Grayscale’s proposal does not necessarily mean that the agency will approve or reject the ETF.

The commission is following standard procedure by collecting public input before making a decision. After the 21-day comment period has elapsed, the SEC can choose to approve, deny, or defer the application.

Those who wish to submit their comments can do so via the SEC’s website. Members of the public are encouraged to share their thoughts on the potential implications of the Hedera ETF.

The SEC is also interested in hearing from any parties who have information relevant to the agency’s decision. For example, the SEC may want to hear from experts in cryptocurrency markets, financial institutions that are considering investing in digital assets, and academics who study the legal and economic aspects of cryptocurrencies.

The agency is particularly interested in feedback on the suitability of the ETF for the investing public and whether the ETF will be priced fairly and efficiently. The SEC will also consider the role of Coinbase Custody Trust Company as custodian of the trust assets.

The news comes as Grayscale ramps up efforts to expand its crypto ETF product suite. Earlier this year, the firm filed an application to list an Ethereum futures ETF with the SEC. The SEC is yet to make a decision on that application.

Grayscale’s push for an Hedera ETF comes amid growing demand for cryptocurrency-based financial products. The SEC has already approved several Bitcoin and Ethereum ETFs, signaling the increasing interest from institutional investors in cryptocurrencies.

However, altcoin ETFs are still largely in regulatory limbo. The SEC has been slow to approve applications for altcoin ETFs, despite the growing demand for such products.

If the Hedera ETF is approved, it could pave the way for more altcoin-focused funds to be listed in the U.S. That would open up new investment opportunities for retail and institutional investors.

It could also help to channel more liquidity into the crypto markets, which could in turn lead to higher prices for cryptocurrencies. The fate of the Hedera ETF now rests in the hands of the SEC.