Grayscale's Hedera (HBAR) Spot ETF Takes a Step Closer to Reality as Nasdaq Files 19b-4 Form with the SEC

The rapid evolution of cryptocurrency ETFs took a significant step forward as the Nasdaq submitted a 19b-4 form for Grayscale’s spot Hedera (HBAR) ETF to the SEC.

The rapid evolution of cryptocurrency ETFs took a significant step forward as the Nasdaq submitted a 19b-4 form for Grayscale’s spot Hedera (HBAR) ETF to the SEC.

This news comes shortly after the submission for Canary Capital’s spot HBAR ETF, signaling increased interest and competition in the altcoin ETF space.

As per Bloomberg’s Senior ETF Analyst Eric Balchunas, both Hedera and Litecoin possess “the best odds” regarding SEC ETF approval due to their momentum with regulatory processes.

Nasdaq is preparing to list and trade Grayscale’s spot Hedera (HBAR) exchange-traded fund.

The stellar move comes as the SEC prepares to review a pair of altcoin ETFs.

The U.S. Securities and Exchange Commission (SEC) is currently reviewing two applications for bitcoin ETFs from BlackRock (NYSE:BLK) and WisdomTree (NYSE:WMT).

Recently, the SEC has faced criticism for delaying its decisions on seven crypto ETF proposals from firms like Ark 21721 and Cathedra.

Earlier this month, the SEC chairman hinted at the possibility of approving a spot bitcoin ETF by the end of the year.

Recently, the SEC approved two bitcoin futures ETFs in 2021, which began trading in October.

However, the commission has yet to approve any spot bitcoin ETFs, despite several attempts over the past seven years.

Earlier this year, seven firms, including Ark 21721 and Cathedra, re-applied for seven eIgEt

The rapid evolution of cryptocurrency ETFs took a significant step forward as the Nasdaq submitted a 19b-4 form for Grayscale’s spot Hedera (HBAR) ETF to the SEC.

This strategic move comes shortly after the submission for Canary Capital’s spot HBAR ETF, signaling increased interest and competition in the altcoin ETF space.

Bloomberg’s Senior ETF Analyst Eric Balchunas noted that both Hedera and Litecoin possess “the best odds” regarding SEC ETF approval due to their momentum with regulatory processes.

This article explores the recent Nasdaq filing for a Grayscale ETF focused on Hedera (HBAR), illuminating key developments and market implications.

Nasdaq's Bold Step: Filing for Hedera (HBAR) ETF

On Monday, the Nasdaq Stock Market LLC took an important step in the evolving cryptocurrency market by filing a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to list and trade Grayscale’s spot Hedera (HBAR) exchange-traded fund. This filing represents a critical phase in the long-awaited approval process for crypto ETFs, highlighting both the growing institutional interest in digital assets and the regulatory framework shaping their future.

Understanding the 19b-4 Filing Process

The 19b-4 filing is the second part of a two-step process initiated for proposing a crypto ETF to the SEC. Following the commission’s acknowledgment, the filing is published in the Federal Register, which commences the SEC’s review and approval processes. This systematic approach points towards a matured regulatory landscape for cryptocurrency investments and offers greater transparency for potential investors.

Grayscale and Canary Capital: Competitive Landscape

Last week, the Nasdaq also submitted a similar 19b-4 form for a spot HBAR ETF on behalf of Canary Capital. This competitive filing underscores the rapidly shifting dynamics within the cryptocurrency ETF market. Investment sentiment appears to be bolstered by recent developments and favorable trends within the regulatory environment, particularly for altcoins, which historically have faced significant challenges.

Market Implications of HBAR ETF Lauching

Hedera operates on a decentralized public network powered by the Hashgraph consensus algorithm, a technological innovation that enhances transaction speed and efficiency. Its governance model, which includes major players such as Google and IBM, adds an additional layer of credibility and stability, appealing to institutional investors. Recent analyses indicate that as the U.S. shifts towards a more crypto-friendly approach under the current administration, there is a growing optimism surrounding the approval of various altcoin ETFs, including Solana, XRP, Cardano, and Dogecoin.

Current Market Trends and Price Movements

Despite the positive developments in ETF filings, Hedera’s price has recently experienced volatility, trading down approximately 14.5% to around $0.22 over the last 24 hours, as reported by COINOTAG. This fluctuation reflects ongoing market pressures and investor sentiment, which can often be unpredictable in the cryptocurrency landscape.

Future Outlook on Crypto ETF Approvals

The overall landscape for cryptocurrency ETFs is evolving rapidly. With the SEC now seemingly more open to the approval of futures and spot ETFs based on a wider range of cryptocurrencies, analysts remain optimistic. Bloomberg analysts have remarked that Dogecoin ETFs, for instance, have a 75% chance of SEC approval, indicating that the demand for crypto-backed financial products is likely to grow. Such developments could significantly influence market dynamics and investor behavior in the near future.