Investment firm Canary Capital has officially filed with the U.S. SEC to create an ETF for Hedera (HBAR), marking its first in this domain.
Details of the Proposed HBAR ETF
The primary goal of the ETF is to provide investors with direct exposure to the value of HBAR. The SEC filing noted that holding HBAR does not provide rights to corporate profits or revenue streams. The cryptocurrencies will be held by an undisclosed custodian.
Operational Uses and Benefits of Hedera Network
The documents clarify that Hedera supports secure online interactions and transactions, bypassing the intermediaries that typically collect data. The main goal of Hedera is to support various enterprise-grade decentralized applications.
Risks and Market Implications
Canary Capital acknowledged the uncertainty of continued growth in the use of Hedera or HBAR. A contraction in demand for HBAR could lead to increased volatility or a reduction in price.
Following the announcement of the ETF application, HBAR's price saw a sharp increase of 33%, indicating strong market interest in the cryptocurrency.
