Canary Capital Files S-1 With SEC for HBAR ETF, Joining Bitwise and 21Shares in Race for Ripple Investment Product

If approved, this would be the first ETF allowing investors to gain exposure to HBAR, Hedera's native token, on a public exchange.

A filing with the U.S. Securities and Exchange Commission has revealed Canary Capital’s intention to launch the first Hedera (HBAR) spot exchange-traded fund (ETF). This development comes hot on the heels of another spot ETF filing, this time for XRP, submitted by 21Shares.

Canary Capital filed an S-1 registration with the U.S. SEC on Monday to launch an ETF focused on HBAR. This filing marks the latest in a string of applications submitted by Canary Capital for spot cryptocurrency ETFs.

The HBAR ETF from Canary Capital, if approved, would be the first ETF to provide investors with direct exposure to HBAR on a public exchange. An S-1 is the standard filing for companies seeking to go public or offer investment products, such as an ETF, that are subject to SEC registration.

This filing would enable investors to gain exposure to HBAR’s value in a regulated manner, without having to directly purchase or hold the token.

HBAR is the native cryptocurrency of the Hedera network, which operates on a decentralized public network and utilizes the Hashgraph consensus algorithm. The Hedera network facilitates rapid and secure global transactions and is governed by a council of renowned companies and organizations.

This governance structure is designed to facilitate secure, compliant decision-making and token distribution. Within the Hedera ecosystem, HBAR serves multiple functions, including powering decentralized applications, facilitating transactions, and enhancing network governance.

The Canary HBAR ETF, as described in the S-1 filing, will solely invest in HBAR and will not utilize derivatives, futures, or any other financial instruments. The filing does not specify a custodian or administrator.

Accredited investors were able to participate in an HBAR Trust launched by Canary Capital in October. In addition to the HBAR ETF, Canary Capital has also filed for registration of other spot cryptocurrency ETFs, such as those for Litecoin, Solana, and XRP.

The SEC's approval of additional spot crypto ETFs is still up in the air. Earlier this year, the agency approved 11 spot bitcoin ETFs and later approved eight Ethereum ETFs.

These filings come amid rumors that Gary Gensler, the current SEC Chair who is known for his critical views on cryptocurrencies, may be stepping down ahead of the new presidential administration. Donald Trump, the President-elect, has also stated his intention to fire Gensler if he takes office.

According to reports, Trump's representatives are considering potential candidates for the SEC chairmanship, including Dan Gallagher, Chief Legal Officer of Robinhood, Paul Atkins, a former Republican SEC commissioner, and Robert Stebbins, a former SEC general counsel.

However, experts maintain that Trump lacks the legal authority to remove Gensler from his post without a valid reason. While regulators typically resign after a shift in the political landscape at the White House, the SEC chair has shown no signs of intending to step down.

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