📊 SEC Review Starts on Canary HBAR ETF Backed by Hedera Network Token
The Canary HBAR ETF is now under formal review by the U.S. Securities and Exchange Commission (SEC). The review will determine whether Nasdaq’s proposal to list the commodity-based trust, backed by Hedera’s native token HBAR, meets the standards for listing under Rule 5711(d).
🔸 SEC Opens Formal Review, Sets Deadline for Comments
In a recent report, we covered the US Securities and Exchange Commission’s move by postponing its decision on HBAR ETF, the native currency of Hedera’s hashgraph distributed ledger.
Based on new developments, the SEC published a notice on June 16 confirming that it has not approved or denied the listing but has moved the application into a deeper review phase.
This means the proposal, initially filed by Nasdaq with an amendment, will now be scrutinized further based on public input and regulatory criteria.
If approved, the Canary HBAR ETF would allow U.S. investors to gain direct exposure to the Hedera coin through traditional markets. The ETF is designed to be physically backed by HBAR, making it the first of its kind in the country.
It is essential to state that the fund sponsor is Canary Capital Group. BitGo and Coinbase Custody will share custody of the assets. The ETF’s benchmark is the CoinDesk Hedera USD Index.
Redemption will be allowed in blocks of 10,000 shares, either in cash or in-kind. Investors, stakeholders, and members of the public have until July 7, 2025, to submit comments. Rebuttals can be filed by July 21, 2025.
The SEC stated it needs to assess whether the product is designed to resist market manipulation and if it meets investor protection standards. Adequate liquidity, pricing transparency, and surveillance mechanisms are also key issues in the ongoing review.
Meanwhile, as mentioned in our previous news article, the US SEC has acknowledged receipt of a staked Tron Exchange Traded Fund (ETF) application filed by Canary Capital.