Canary Capital files for first HBAR Spot ETF with SEC

Canary Capital has officially filed for S-1 registration with the US SEC for an exchange-traded fund based on Hedera’s HBAR token.

According to the filing, if approved, this would be the first HBAR (HBAR) spot ETF that would allow investors to access the value of HBAR, the native token of the Hedera network.

S-1 registration is the SEC’s standard filing for companies that plan to go public or offer investment products such as ETFs.

In the context of Canary’s filing, this means that the firm is seeking to list its HBAR fund on a public exchange, offering investors a regulated way to access the value of HBAR without directly purchasing or holding the cryptocurrency.

The ETF will track the price of HBAR by holding the token directly, without derivatives or futures contracts.

Canary Capital and HBAR

HBAR, the core asset of the Hedera network, powers decentralized applications and facilitates global transactions on its platform.

The Hedera network uses the Hashgraph consensus algorithm and is managed by leading companies and organizations to ensure transparency and security. HBAR plays various roles in the Hedera ecosystem, from transaction facilitation to network governance.

To manage the fund, Canary Capital’s ETF structure includes “Authorized Participants” who will manage the creation and redemption of shares, a commonly used model for crypto-based investment funds.

The filing indicates that HBAR assets will be held securely in custody accounts and some will be kept in “cold storage” in secure, geographically separated locations.

Earlier this year, Canary launched the first US-based HBAR Trust, giving institutional investors access to Hedera’s native cryptocurrency. The foundation targeted accredited investors seeking advanced crypto investment opportunities.

This filing comes as Canary Capital pursues similar ETFs focused on other cryptocurrencies such as Litecoin.