Canary Capital has filed for an ETF registration based on the HBAR token, offering investors exposure to the Hedera network's token value.
S-1 Registration Application
Canary Capital has officially filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund centered on the HBAR token. If approved, this would be the first HBAR ETF, allowing investors to gain exposure to the token's value without direct purchase or storage.
Goals and ETF Strategy
The ETF structure will track the price of HBAR by holding the token directly, without the use of derivatives or futures contracts. This provides a regulated approach for investors interested in the Hedera network's assets. The ETF will utilize a model with 'Authorized Participants' to handle the creation and redemption of shares, a common strategy in crypto-based investment funds.
Canary Capital's Support and Plans
HBAR, the core asset of the Hedera network, is used for decentralized applications and global transactions, and plays a role in network governance via the Hashgraph consensus algorithm. Canary Capital plans to securely hold HBAR assets in custodial accounts, with some stored in 'cold storage' across secure, geographically separated locations. Earlier this year, the company launched an HBAR Trust for institutional investors, and now looks into ETFs focused on other cryptocurrencies, such as Litecoin.
Canary Capital's initiative to establish an HBAR-based ETF represents a significant move in providing access to the crypto sphere through regulated investment tools, potentially aiding the development and adoption of Hedera technologies.
