Nasdaq Seeks SEC Nod for HBAR ETF as Crypto Filings Surge

The race to
bring more cryptocurrency exchange-traded funds (ETFs) to market continues as
Nasdaq seeks to list the Canary HBAR ETF. The exchange filed an application
with the US Securities and Exchange Commission (SEC) to offer an ETF supported
by Hedera Network’s native token, HBAR.

This initiative
adds to a growing list of applications from issuers and exchanges planning to
introduce altcoin ETFs. The SEC must now review and approve the filing before
trading can begin.

Crypto ETF
Filings Gain Momentum

Canary
Capital, the asset manager behind the proposed ETF, initially filed for SEC
approval in November. The fund aims to provide investors with exposure to HBAR,
which powers Hedera’s hashgraph-based distributed ledger.

Canary has reportedly
sought approval for ETFs tied to other altcoins, including Solana, reflecting
the increasing demand for crypto investment products.

The Nasdaq
filing comes amid a broader push to expand crypto ETFs. Other issuers have
applied for ETFs tied to cryptocurrencies like Polkadot and Official Trump
(TRUMP). Additionally,
asset managers are awaiting regulatory approval for modifications to existing
ETFs, such as introducing staking options and in-kind redemptions.

And there’s the 19b-4 $HBAR filing from @CanaryFunds/@Nasdaq. https://t.co/lUbNguhkLl pic.twitter.com/3nPXGIzsWl

— Eleanor Terrett (@EleanorTerrett) February 24, 2025

The SEC’s
stance on cryptocurrency has evolved significantly following President Donald
Trump’s second term. The shift has already resulted in two crypto index ETFs
launching in February. Last week, Franklin Templeton introduced an ETF holding
both Bitcoin and Ether, following Hashdex’s Nasdaq Crypto Index US ETF (NCIQ)
debut on Feb. 14.

Analysts expect additional approvals in the coming months as
the regulatory environment continues to change. Bloomberg
Intelligence estimates a 65% chance for an XRP ETF to gain approval in the US,
while the odds for Litecoin and Solana ETFs stand at 90% and 70%, respectively.
HBAR’s approval likelihood remains uncertain, as Bloomberg has not yet provided
an estimate, Cointelegraph reported.

A Changing
Landscape for Crypto Investments

The SEC’s
previous approach to cryptocurrency was far more restrictive. Under former
President Joe Biden, the regulator launched many lawsuits against crypto
firms, citing securities law violations. In 2024, it allowed spot Bitcoin ETFs
but rejected proposals for ETFs linked to other digital assets.

With
Nasdaq’s HBAR ETF filing and a growing number of applications for altcoin ETFs,
the SEC faces mounting pressure to expand the crypto investment landscape further.

If approvals
continue at the current pace, investors could soon have more diversified
options for gaining exposure to digital assets through regulated financial
markets.

This article was written by Jared Kirui at www.financemagnates.com.