Nasdaq Submits Filing for Grayscale HBAR ETF Approval

Nasdaq has officially filed a Form 19b-4 with the SEC to gain approval for the Grayscale Hedera Trust (HBAR) ETF shares. This key application is part of the process required for the ETF to be listed and traded. The shares fall under the category of Commodity-Based Trust Shares as per Nasdaq Rule 5711(d), placing them alongside regulated investment products such as the spot Bitcoin (BTC) ETF.

Grayscale HBAR ETF Seeks SEC Approval

This recent filing is a continuation of efforts to integrate Hedera into the regulated financial sector. The application was submitted in accordance with Section 19(b)(1) of the Securities Exchange Act of 1934, which enables exchanges to request rule amendments for new financial instruments.

“The proposed rule change aims to enhance the mechanisms of a free market while safeguarding investors and the public interest by facilitating the listing and trading of Shares, thus fostering competition among market entities for the benefit of investors,” the filing stated.

Following Nasdaq's filing, Canary Capital has also made strides towards an HBAR-based ETF. The asset manager had previously initiated an S-1 application for this purpose on November 12, 2024, and submitted its own 19b-4 filing in late February.

As of now, neither Grayscale's nor Canary Capital's proposals have been listed in the Federal Register, indicating they are still undergoing preliminary reviews.

The SEC is currently assessing whether these filings comply with the required procedural standards before moving forward with the evaluation. Once published, these proposals will enter an initial review period of 45 days, during which the SEC has the authority to approve, deny, or extend the review timeline. In cases where additional time is needed, the review could extend up to 240 days before a final determination is made.

If granted approval, both the Grayscale and Canary Capital HBAR ETFs would provide investors with a regulated means of gaining exposure to HBAR without directly owning the asset, reflecting a rising trend of institutional interest in cryptocurrency investment products.

Interestingly, HBAR experienced a brief 10% price increase following the news of Nasdaq's filing for Canary Capital's ETF. However, the recent filing has not elicited a similar market reaction.

Currently, HBAR has seen a 6.8% decrease within the last 24 hours, trading at $0.23. Despite this downtrend, HBAR’s performance has been better than that of other smart contract platforms, which have collectively dropped by 8.8%, according to data from CoinGecko.