The U.S. Securities and Exchange Commission (SEC) has acknowledged Nasdaq’s filing to list and trade shares of the Grayscale Hedera Trust, which holds HBAR tokens. The acknowledgment marks the beginning of a 21-day public comment period, during which market participants and stakeholders can submit opinions on the proposal before the SEC makes a final decision.
Nasdaq submitted Form 19b-4 earlier this month, seeking regulatory approval for Grayscale’s investment product. If approved, the trust’s shares will trade under commodity-based trust share rules, with Grayscale Operating and Grayscale Investments serving as sponsors. CSC Delaware Trust Company will act as the trustee, while Coinbase Custody Trust Company will provide custodial services.
The SEC’s acknowledgment does not indicate approval of the Grayscale Hedera Trust ETF, but it reflects a potential shift in the regulator’s approach to cryptocurrency investment products. Historically, the SEC has been reluctant to approve crypto-related ETFs, leading to withdrawals of several applications. However, the approval of spot Bitcoin and Ethereum ETFs has set a precedent for further consideration of digital asset investment products.
Nasdaq has argued that its surveillance-sharing agreement with Coinbase Derivatives, through ISG membership, offers sufficient investor protection—similar to arrangements that facilitated prior ETF approvals. This agreement is expected to play a key role in the SEC’s assessment of the Grayscale Hedera Trust filing.
Growing Interest in HBAR-Based ETFs
Grayscale and Canary Capital are the only asset managers currently pursuing HBAR-based ETFs. Last month, Nasdaq filed a separate 19b-4 form with the SEC for Canary Capital’s spot HBAR ETF. If approved, Grayscale’s Hedera ETF would be the firm’s sixth altcoin investment product, alongside funds tracking XRP, Solana, Dogecoin, Litecoin, and Cardano.
HBAR, the native token of the Hedera Network, is among the top digital assets by market capitalization. Currently, HBAR ranks as the 16th largest cryptocurrency, according to CoinGecko, trading at approximately $0.19. The token has experienced a 17% decline over the past week, though market analysts speculate that the ETF acknowledgment could boost investor confidence.
The SEC acknowledges Grayscale’s HBAR ETF proposal as the regulator delays decisions on several other cryptocurrency ETFs. Applications related to XRP, Solana, and Litecoin ETFs from firms such as Grayscale, VanEck, 21Shares, and Canary remain under extended review. The SEC has cited the need for additional time to assess these filings, setting new decision deadlines into May.
Additionally, the SEC is reviewing proposals concerning in-kind creations and redemptions for Fidelity’s FBTC and FETH, as well as BlackRock’s IBIT application. The regulator has also yet to rule on 21Shares’ proposal to integrate staking into its Ethereum ETF.
Institutional Interest and Market Response
The acknowledgment of Nasdaq’s filing has generated speculation about its potential impact on HBAR’s market performance. Historically, ETF-related developments have influenced digital asset prices, shifting investor sentiment based on regulatory progress. Following the SEC’s acknowledgment, HBAR experienced a 7% price increase over 24 hours, reflecting renewed optimism among investors.
BNY Mellon Asset Servicing is expected to oversee administration and transfer agent duties for the Grayscale Hedera Trust, reinforcing institutional involvement in the product. If approved, the trust would provide regulated exposure to HBAR, potentially increasing institutional demand for the asset.
With the SEC’s 21-day public comment period underway, industry stakeholders closely monitor the regulator’s response. The outcome of this filing could indicate the SEC’s evolving stance on altcoin-based ETFs, shaping future investment opportunities in the cryptocurrency market.
