The U.S. Securities and Exchange Commission has acknowledged Grayscale Investments' proposal for an ETF enabling HBAR access on Nasdaq, launching a formal review process.
Grayscale Trust Structure
Grayscale's new product offers investment in HBAR, the Hedera network's cryptocurrency, without direct acquisition. Shares of the trust will trade on Nasdaq under commodity trust rules, with Grayscale Operating and Grayscale Investments as sponsors. CSC Delaware Trust Company is the trustee, and Coinbase Custody Trust Company serves as the custodian.
Significance of SEC Acknowledgement
The SEC's acknowledgment does not assure approval but indicates a shift in attitude toward cryptocurrency-related products. Despite a historically cautious approach, the recent emergence of spot Bitcoin and Ethereum ETFs shows a readiness for crypto-based economic goods.
Growing Interest in HBAR ETFs
Grayscale is not alone in seeking an HBAR ETF. Ken Griffin’s Citadel hedge fund and others demonstrate interest in creating investment products tracking Hedera's token. Grayscale also pursues approval for ETFs based on other digital assets like XRP, Solana, Dogecoin, Litecoin, and Cardano.
Grayscale's HBAR ETF filing decision could significantly influence the crypto investment landscape, paving the way for other altcoin ETFs and promoting the integration of digital assets into traditional finance.
