Canary Capital has formally filed an S-1 registration with the U.S. SEC for an exchange-traded fund centered on Hedera’s HBAR token.
If accredited, this is able to be the primary HBAR (HBAR) spot ETF, permitting buyers to realize publicity to the worth of HBAR, the native token of the Hedera community, in line with the submitting.
An S-1 registration is the SEC’s normal submitting for corporations planning to go public or supply funding merchandise, equivalent to an ETF.
Within the context of Canary’s utility, this implies the agency seeks to listing its HBAR fund on a public change, providing a regulated approach for buyers to realize publicity to HBAR’s worth with out immediately buying or holding the cryptocurrency.
The ETF would observe the value of HBAR by holding the token immediately, with out derivatives or futures contracts.
Canary Capital and HBAR
HBAR, the core asset of the Hedera community, powers decentralized purposes and facilitates international transactions on its platform.
The Hedera community makes use of the Hashgraph consensus algorithm and is ruled by outstanding companies and organizations to make sure transparency and safety. HBAR serves a number of roles inside the Hedera ecosystem, from transaction facilitation to community governance.
To handle the fund, Canary Capital’s ETF construction contains “Approved Contributors” to deal with the creation and redemption of shares, a mannequin generally used for crypto-based funding funds.
The submitting signifies that HBAR belongings might be securely held in custodial accounts, with some in “chilly storage” throughout safe, geographically separated places.
Earlier this yr, Canary launched the primary U.S.-based HBAR Belief, which supplied institutional buyers with entry to Hedera’s native cryptocurrency. The belief focused accredited buyers searching for superior crypto funding alternatives.
This submitting comes as Canary Capital pursues comparable ETFs centered on different cryptocurrencies, equivalent to Litecoin.