The investment world is abuzz once again as exchange-traded funds (ETFs) come back into the spotlight, driven by recent developments involving Donald Trump and fresh ETF submissions. Canary Capital has made headlines by filing an S-1 registration with the U.S. Securities and Exchange Commission (SEC) to launch what could be the first-ever Hedera (HBAR) spot ETF. This innovative financial product aims to offer investors a straightforward way to gain exposure to HBAR, the native token of the Hedera Network.
Canary Explores Buying Demand in HBAR
In a move that has piqued the interest of both investors and analysts, Canary Capital is seeking SEC approval for an ETF focused exclusively on Hedera’s HBAR token. Should this proposal move forward, it would become the inaugural ETF allowing public market exposure to HBAR, Hedera’s core digital currency.
Filing an S-1 is a crucial step for companies aspiring to introduce investment vehicles like an ETF to the public. This regulatory process is designed to offer investors a secure and compliant method to tap into HBAR’s market value without the complexities of direct token ownership.
HBAR serves as the backbone of the Hedera network, a decentralized public ledger utilizing the groundbreaking Hashgraph consensus algorithm. This technology facilitates swift and secure transactions on a global scale while being governed by a council of esteemed companies and organizations. The governance model aims to ensure secure and compliant decision-making processes, as well as equitable token distribution.
The proposed Canary HBAR ETF, as detailed in its S-1 filing, plans to invest solely in HBAR, steering clear of derivatives, futures, or other complex financial instruments. Notably, the filing does not yet specify a custodian or administrator for the ETF.
Canary Capital, under the leadership of Steven McClurg—also the founder of Valkyrie Funds known for its spot crypto ETFs—has already ventured into the HBAR space with an HBAR Trust launched in October for accredited investors. The firm is also expanding its horizons by filing for other spot cryptocurrency ETFs, including those for Litecoin, Solana, and XRP.
What’s Going Between Trump and SEC?
The path to approval for new spot crypto ETFs by the SEC is fraught with uncertainty. Earlier this year, the SEC greenlit 11 spot bitcoin ETFs and later approved eight Ethereum ETFs, setting a precedent that raises questions about future approvals.
Speculation is rife that Gary Gensler, the current SEC Chair known for his critical stance on cryptocurrencies, may resign before the next presidential administration takes office. Donald Trump, the President-elect, has made it clear that he intends to replace Gensler should he assume office.
Trump’s team is reportedly considering several candidates for the SEC chairmanship, including Dan Gallagher, the Chief Legal Officer of Robinhood, former Republican SEC commissioner Paul Atkins, and Robert Stebbins, a former SEC general counsel. However, experts caution that Trump would need a legitimate reason to dismiss Gensler, as legal constraints protect the SEC Chair’s position from arbitrary removal.
While it’s common for regulatory heads to resign following political transitions, Gensler has not indicated any plans to step down, leaving the future leadership of the SEC in question.
