- The bitcoin investment company filed an S-1 registration statement with the SEC on Tuesday.
- According to the application, the fund will offer exposure to the value of the Hedera Network’s native asset.
Canary Capital is the first company to file for a Hedera spot exchange-traded fund with the U.S. Securities and Exchange Commission.
On Tuesday, the cryptocurrency investment firm submitted an S-1 registration statement to the SEC. The fund aims to provide exposure to the initial asset value of the Hedera Network.
The Hedera network, a decentralized public network that uses the Hashgraph consensus mechanism, has HBAR as its native digital asset. Hedera, which is run by a council composed of well-known businesses and organizations, enables quick and safe transactions all over the world. The purpose of this governance model is to guarantee that token distribution and decision-making are carried out in a safe and legal manner. The Hedera ecosystem makes use of HBAR for a number of functions, such as supporting decentralized apps, enabling transactions, and taking part in network governance.
The Canary HBAR ETF plans to hold solely HBAR directly, without the use of futures, derivatives, or other financial instruments, according to the registration. The S-1 filing does not specify an administrator or custodian.
In October, the company also introduced an HBAR Trust for approved investors. Steven McClurg, the founder of Valkyrie Funds, which provides additional spot cryptocurrency ETFs, also created Canary Capital. In the past, Canary Capital has submitted registration statements for an XRP ETF, a Solana ETF, and a spot Litecoin ETF.
Whether the SEC would authorize more spot crypto ETFs is uncertain. Earlier this year, the agency authorized 11 spot bitcoin ETFs and shortly after, approved eight Ethereum ETFs. These filings also coincide with a growing possibility that Gary Gensler, the current chair of the SEC and a vocal opponent of cryptocurrency, may choose to resign before a new presidential administration takes office. Donald Trump, the president-elect, has also declared that if elected, he will fire Gensler.
Canary Capital’s application on Tuesday, according to ETF Store President Nate Geraci, may be a sign of how businesses anticipate changes to cryptocurrency laws under a new government.
This is a fairly early indicator of how much certain ETF issuers anticipate a change in the regulatory landscape for cryptocurrency. In an effort to test the SEC under the next Trump administration, I anticipate issuers will become more assertive in their crypto-related ETF filings.
According to a Reuters report, Trump’s advisers are reportedly considering former SEC general counsel Robert Stebbins, former Republican SEC commissioner Paul Atkins, and Robinhood Chief Legal Officer Dan Gallagher as potential SEC chairmen.
Gensler stated that the agency’s decision to approve spot bitcoin ETFs in January was limited to a single set of files.
I won’t judge it for you or the audience because we have other filings in front of us. A commission consisting of five members reviews and discusses that.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
