Canary Capital Files for Spot HBAR Exchange-Traded Product with SEC

Asset management firm Canary Capital has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to list a spot Hedera (HBAR) exchange-traded product (ETP). The firm’s application, filed on November 12, proposes to offer U.S. investors the opportunity to trade shares of its Canary Hedera HBAR Trust on an undisclosed exchange.

The proposed product, if approved, would be one of the first spot Hedera ETPs available to investors. Canary Capital is also seeking approval to list and trade spot exchange-traded products tied to Solana (SOL) and XRP (XRP). According to the filing, the HBAR ETP would not rely on derivatives or futures contracts tied to HBAR, avoiding the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC).

At the time of the filing, HBAR, the native token of the Hedera network, had a market capitalization of over $2.5 billion, with the asset trading at around $0.07 per token. Canary launched the HBAR Trust on October 1 as a private offering aimed at qualified investors.

The SEC’s decision on approving these products remains uncertain, particularly as the U.S. crypto industry awaits clarity on how the commission will approach additional spot crypto ETFs. Following the approval of Bitcoin (BTC) and Ether (ETH) ETFs earlier this year, the SEC’s stance on other cryptocurrencies like Solana, XRP, and Hedera is still unclear.

Political changes in the U.S. following the November 2024 election could influence the SEC's crypto policies. Starting in January, Republicans will control the legislative and executive branches, with President-elect Donald Trump having previously expressed his intention to fire SEC Chair Gary Gensler. Despite Gensler’s tough stance on crypto regulation, he supported the approval of both spot Bitcoin and Ether ETFs, signaling potential future approval for other spot crypto products as well.