Nasdaq Files Rule Change Request for Hedera Spot ETF, Putting It in Pole Position for Approval

Litecoin’s position as the most probable altcoin exchange-traded fund (ETF) to receive regulatory approval faces intense competition from Hedera.

Nasdaq has filed a 19b-4 application with the US Securities and Exchange Commission (SEC) for a Hedera spot exchange-traded fund (ETF) on behalf of Canary Capital, boosting its chances of approval.

Litecoin's position as the most probable altcoin ETF to receive regulatory approval faces competition from Hedera. This is because Nasdaq's recent filing for the Hedera spot ETF comes with an initial request for a rule change.

Nasdaq filed a 19b-4 application on Monday with the US SEC for Canary Capital, one of the newest asset managers. The investment product aims to provide alternative exposure to Hedera, the 16th largest cryptocurrency by market capitalization.

Nasdaq’s 19b-4 application decimates earlier concerns that Nasdaq filed the S-1 application without an initial request for a rule change. Moreover, it sets the chances of a Canary Hedera spot ETF on par with Litecoin's.

Bloomberg's senior ETF analyst Eric Balchunas confirmed the application in a tweet today. He suggested that the recent filing shows that Nasdaq has made significant progress with the US SEC, increasing the chances of its approval. Notably, today's application comes just three days after Nasdaq submitted an amended S-1 form for the product with the securities watchdog.

Chances of Litecoin, Hedera ETFs Increase

Balchunas highlighted that the filing shows that Litecoin and Hedera-based ETFs are now the most likely to get regulatory approval among other altcoins. This comes after the market expert stated in an earlier analysis that the chances of an HBAR ETF launching this year were insignificant.

However, the recent developments indicate that the ETF may launch earlier than ETFs of prominent assets like XRP and Solana. Nevertheless, following the recent acknowledgements from the US SEC, the chances of approval for the XRP and SOL ETFs remain relatively high.

Hedera has reacted positively to the recent development, surging over 7% in an hour. At the time of writing, HBAR trades at $0.224, with its market capitalization nearing $10 billion.

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