The United States Securities and Exchange Commission (SEC) has officially acknowledged Nasdaq’s proposal to list and trade shares of the Grayscale Hedera Trust.
This marks a significant milestone in providing investors with regulated exposure to HBAR, the native token of the Hedera Network.
Source: sec.govHBAR Trust ETFs Pass Acknowledgement
The SEC’s acknowledgment triggers a 21-day public comment period, allowing industry stakeholders to voice their opinions before the regulator makes a final decision on approval, rejection, or further review.
The commodity-based trust structure directly holds HBAR, with shares representing fractional ownership of the trust’s holdings.
However, unlike spot ETFs, this trust does not allow direct redemptions, meaning shares can trade at a premium or discount to the actual asset value.
The trust’s administration will be handled by BNY Mellon Asset Servicing, with CSC Delaware Trust Company acting as the trustee and Coinbase Custody Trust Company managing asset custody.
This development has been met with positive market sentiment, with HBAR surging over 7% in the past 24 hours following the SEC’s acknowledgment.
Source: TradingViewWhile Grayscale and Canary Capital remain the only asset managers pursuing HBAR-based ETFs, this acknowledgment signals growing institutional interest in digital asset investment vehicles.
What Does HBAR Commodity-Based Trust ETF Mean For Investors?
Grayscale’s Hedera Trust aims to provide regulated exposure to HBAR through a commodity-based investment structure.
Unlike spot ETFs, this trust does not offer direct redemptions, meaning investors can buy and sell shares, but their price may not always align with HBAR’s real-time market value.
The trust’s framework is designed to mitigate counterparty risks and simplify digital asset exposure for institutional investors.
BNY Mellon will oversee administration and transfer duties, ensuring compliance and operational integrity.
Coinbase Custody Trust Company will serve as the primary custodian, leveraging its industry expertise in securing digital assets.
Additionally, CSC Delaware Trust Company will act as the trustee, ensuring the trust operates within regulatory frameworks.
With the SEC acknowledging Nasdaq’s filing, industry analysts speculate that institutional adoption of HBAR could gain momentum.
If approved, the trust could encourage increased investment in Hedera’s ecosystem, potentially influencing HBAR’s long-term market performance.
SEC’s Stance on Crypto ETFs and Market Trends
While the SEC has moved forward with reviewing Grayscale’s HBAR Trust, it has simultaneously delayed decisions on multiple altcoin ETFs.
This includes Grayscale’s XRP ETF and Cboe BZX Exchange’s spot Solana ETF, both of which have been pushed back for further review until May.
The delays are seen as part of the SEC’s cautious approach to approving new cryptocurrency-based financial products.
Bloomberg ETF analyst James Seyffart dismissed concerns over the postponement, stating that such delays are standard procedure rather than indications of outright rejection.
Historically, the SEC has been hesitant in approving spot cryptocurrency ETFs but has gradually softened its stance, particularly after regulatory shifts following the resignation of former SEC Chair Gary Gensler.
Additionally, the SEC has been inundated with ETF applications, a trend that has accelerated in response to shifting political dynamics, including Trump’s election.
The latest in this wave of filings is Bitwise’s Bitcoin Standard Corporations ETF. This fund will track companies holding at least 1,000 BTC in their corporate treasuries, offering investors indirect exposure to Bitcoin.
According to Bitwise, this ETF aims to leverage the increasing trend of companies allocating cash reserves to Bitcoin, viewing it as a liquid and scarce strategic reserve asset, independent of government monetary policies.
Looking forward, Grayscale’s HBAR Trust was acknowledged due to the evolving regulatory stance of the current pro-crypto administration regarding cryptocurrency ETFs.
While full approval is not guaranteed, this step signals a growing acceptance of digital asset investment vehicles within traditional finance.
The SEC’s final decision will most likely determine how other pending crypto ETF applications will be handled.
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