Grayscale Files for Hedera ETF With SEC—What It Means for HBAR

• Grayscale Investments, a leading digital asset management firm, has officially filed for its sixth altcoin exchange-traded fund, which, this time, is focused on Hedera (HBAR).
• The SEC, led by acting Chair Mark Uyeda, has already recognized multiple ETF filings from Grayscale, including those for Cardano, XRP, and Dogecoin.

Grayscale Investments, a leading digital currency asset manager, has taken a step in broadening its cryptocurrency offerings by filing a Form 19b-4 with the U.S. Securities and Exchange Commission (SEC). The filing, submitted by Nasdaq Stock Market LLC on Grayscale’s behalf, seeks approval to list and trade a Hedera (HBAR) exchange-traded fund (ETF). 

Hedera has been gaining traction in the blockchain industry due to its unique hashgraph consensus mechanism, which offers high-speed transactions, energy efficiency, and strong enterprise adoption. Notably, this isn’t the first attempt at launching an HBAR ETF, just last month, Nasdaq filed a 19b-4 form with the SEC on behalf of Canary Capital to list a spot HBAR ETF.

Form 19b-4 is a crucial step in the SEC’s ETF approval process. If granted, this ETF would allow investors to gain exposure to HBAR without needing to hold the asset directly, simplifying investment strategies and reducing associated risks.

The SEC initially reviews ETF filings for 45 days after their publication in the Federal Register, allowing time for evaluation and public comments. After this period, the commission may approve, reject, or extend the review, with the process potentially lasting up to 240 days.

Given the increasing number of cryptocurrency ETF applications, the SEC’s decision on Grayscale’s Hedera ETF will be closely watched by investors and industry stakeholders alike.

Grayscale’s Expanding Crypto ETF Portfolio

Grayscale has been actively broadening its range of cryptocurrency ETFs, reflecting the growing industry trend of bringing regulated crypto investment products to traditional financial markets. As mentioned in a previous news brief, the firm has already filed for ETFs linked to Solana (SOL), further strengthening its presence in the space.

In a similar move, Nasdaq submitted Form 19b-4 to the SEC to list and trade shares of Grayscale’s spot Polkadot (DOT) ETF. Additionally, the NYSE Arca filed a proposal on February 10 for Dogecoin (DOGE) and XRP ETFs on behalf of Grayscale, both of which were acknowledged by the SEC. Furthermore, under acting Chair Mark Uyeda, the SEC has also officially recognized Grayscale’s Cardano ETF filing, marking another significant step in the regulatory process.

The commission has recently shown a more open stance toward the crypto market, as evidenced by its decision to close its investigation into Uniswap Labs without pursuing enforcement action and the resolution of the Kraken lawsuit.

These developments highlight the increasing institutional interest in crypto ETFs despite ongoing regulatory uncertainties. As of press time, HBAR is trading at $0.2295, reflecting a 12% decline in the last 24 hours but maintaining an 18.32% gain over the past week. However, trading volume has dropped 39.61%, reaching $842 million, indicating a temporary slowdown in market activity.