Canary Capital Files for First U.S. HBAR ETF

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The landscape of cryptocurrency investment in the United States is expanding beyond Bitcoin and Ethereum, with new financial products targeting emerging digital assets. Canary Capital Group has taken a significant step by filing with the Securities and Exchange Commission (SEC) to launch the first U.S.-based exchange-traded fund (ETF) tracking HBAR, the native token of the Hedera Network. This move marks a pivotal moment in institutional crypto adoption and signals growing confidence in enterprise-grade distributed ledger technologies.

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Expanding Access to Enterprise Blockchain Assets

According to the SEC registration statement, the proposed Canary HBAR ETF aims to provide investors with exposure to HBAR’s price performance through a regulated financial instrument. Unlike earlier crypto investment vehicles limited to accredited investors, this ETF could open doors for retail participation—subject to regulatory approval.

The fund intends to track HBAR using a pricing benchmark derived from U.S. dollar-denominated data provided by CoinDesk’s financial data service, ensuring transparency and alignment with market standards. This approach mirrors methodologies used in existing spot Bitcoin and Ethereum ETFs, reinforcing credibility and auditability.

Canary Capital, headquartered in Nashville, has been at the forefront of niche crypto product development. In October 2024, it launched the Canary HBAR Trust, the first U.S. investment vehicle dedicated to HBAR—though accessible only to accredited investors. That earlier product laid the groundwork for broader market access.

“The accelerating demand for crypto offerings seems to be exponential since this year’s launch of Spot Bitcoin ETFs, yet there remains a gap regarding firms with institutional experience who are willing to continue to innovate and deliver solutions beyond retail products,” said Steven McClurg, CEO of Canary Capital, during the trust’s launch.

This latest filing reflects a strategic effort to bridge that gap by bringing institutional rigor to underrepresented but technologically promising digital assets like HBAR.

Understanding HBAR and the Hedera Network

HBAR is more than just a cryptocurrency—it serves as both the native currency and security mechanism for the Hedera Network, a high-performance distributed ledger platform designed for enterprise use cases. Unlike traditional blockchain systems reliant on energy-intensive proof-of-work mechanisms, Hedera uses a unique consensus algorithm called Hashgraph, co-invented by Dr. Leemon Baird and Mance Harmon in 2018.

Hashgraph enables fast, fair, and secure transactions with low latency and high throughput, making it ideal for applications in supply chain management, identity verification, micropayments, and decentralized finance (DeFi). HBAR plays a central role in this ecosystem by:

As of the latest data from CoinMarketCap, HBAR trades at approximately $0.06**, reflecting a 2.4% gain over the past 24 hours. With a market capitalization of around **$2.3 billion, it ranks as the 45th largest cryptocurrency globally.

While not as widely recognized as Bitcoin or Ethereum, Hedera has secured partnerships with major enterprises including Google, IBM, and LG, underscoring its real-world utility and long-term viability.

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The Broader Trend: A Surge in Crypto ETF Filings

Canary Capital’s HBAR ETF proposal is part of a wider wave of innovation in crypto-backed ETFs. The success of spot Bitcoin ETFs—which have attracted over **$28 billion in net inflows since January 2024**, including $4.7 billion since November 6 according to Farside Investors—has catalyzed interest in expanding the crypto ETF universe.

In recent months, Canary has filed for several other first-of-their-kind products:

These filings suggest a shift toward diversification within regulated crypto investing. Investors are no longer satisfied with exposure limited to the top two cryptocurrencies; they’re seeking opportunities in assets with strong fundamentals, unique technology, and institutional backing.

However, regulatory hurdles remain significant. For the Canary HBAR ETF to become reality, two key approvals are required:

  1. SEC clearance of the S-1 registration statement
  2. Listing approval from a national securities exchange

Notably, the current filing does not disclose a proposed ticker symbol or expense ratio, indicating the product is still in early development stages.

Why HBAR Could Be the Next Institutional Favorite

Several factors make HBAR an attractive candidate for institutional investment:

These attributes position HBAR not just as a speculative asset but as a foundational component of future digital infrastructure.

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Frequently Asked Questions (FAQ)

Q: What is the Canary HBAR ETF?
A: It’s a proposed exchange-traded fund that would track the price performance of HBAR, the native token of the Hedera Network, offering regulated exposure to retail and institutional investors.

Q: Is the ETF already available for investment?
A: No. The product is still in the filing stage and requires approval from both the SEC and a national exchange before it can launch.

Q: How does HBAR differ from other cryptocurrencies?
A: HBAR runs on the Hedera Hashgraph network, which uses a directed acyclic graph (DAG)-based consensus mechanism instead of traditional blockchain. This allows faster transactions, lower fees, and greater scalability.

Q: Who can invest in the Canary HBAR Trust?
A: Currently, only accredited investors can participate in the Canary HBAR Trust. The ETF, if approved, would likely be available to all investors.

Q: Why are crypto ETFs important?
A: They provide a secure, regulated way for traditional investors to gain exposure to digital assets without managing private keys or using cryptocurrency exchanges.

Q: Will the ETF hold physical HBAR tokens?
A: While details are not yet public, most spot crypto ETFs hold the actual underlying asset. It is expected that this ETF would follow a similar model.

Core Keywords:

With increasing momentum behind alternative crypto ETFs, Canary Capital’s initiative could pave the way for broader recognition of high-potential digital assets built on scalable, compliant platforms. As regulatory clarity improves and investor appetite grows, products like the HBAR ETF may soon become standard components of diversified portfolios.