The cryptocurrency investment landscape in the United States may soon expand beyond Bitcoin and Ethereum, as Canary Capital Group has officially filed with the Securities and Exchange Commission (SEC) to launch the nation’s first HBAR ETF. This proposed exchange-traded fund would track the performance of HBAR, the native token of the Hedera Network, a high-performance distributed ledger platform increasingly adopted for enterprise use cases.
👉 Discover how next-generation crypto ETFs are reshaping investment opportunities in 2025.
The registration statement, submitted to the SEC, outlines that the Canary HBAR ETF will measure its performance against a pricing benchmark derived from HBAR’s U.S. dollar value, sourced through CoinDesk’s financial data service. This strategic move positions Canary Capital at the forefront of expanding institutional access to emerging digital assets beyond the dominant crypto giants.
This filing follows Canary’s earlier launch of the Canary HBAR Trust in October—a private investment vehicle available exclusively to accredited investors. That trust marked the first regulated U.S.-based product offering exposure to HBAR, signaling growing confidence in the asset’s long-term potential.
“The accelerating demand for crypto offerings seems to be exponential since this year’s launch of Spot Bitcoin ETFs, yet there remains a gap regarding firms with institutional experience who are willing to continue to innovate and deliver solutions beyond retail products,” said Steven McClurg, CEO of Canary Capital, during the trust’s debut.
The Growing Case for HBAR and the Hedera Network
HBAR isn’t just another cryptocurrency—it plays a foundational role in securing and operating the Hedera Network, a public distributed ledger technology (DLT) platform known for its speed, security, and energy efficiency. Unlike traditional blockchain systems that rely on proof-of-work or proof-of-stake alone, Hedera uses a unique consensus algorithm called Hashgraph, which enables high throughput and fairness in transaction ordering.
According to CoinMarketCap, HBAR serves three core functions within the ecosystem:
- Network Security: Validators stake HBAR to participate in consensus, helping secure the network.
- Transaction Fees: Users pay small fees in HBAR to execute smart contracts, transfer tokens, or store data.
- Governance Participation: While not fully decentralized, Hedera’s governing council members use HBAR-based mechanisms to help guide network upgrades.
Launched in August 2018 by Dr. Leemon Baird and Mance Harmon, Hedera has attracted enterprise partners such as Google, IBM, and LG. Its focus on compliance, low latency, and predictable costs makes it particularly attractive for real-world applications like supply chain tracking, digital identity, and micropayments.
As of the latest data, HBAR trades at approximately $0.06**, reflecting a 2.4% increase over the past 24 hours. With a market capitalization of around **$2.3 billion, it ranks as the 45th largest cryptocurrency globally—demonstrating steady adoption despite broader market fluctuations.
A New Wave of Cryptocurrency ETF Innovation
Canary Capital’s HBAR ETF proposal is part of a broader trend: the diversification of crypto-backed ETFs beyond Bitcoin and Ethereum. Investor appetite for regulated exposure to digital assets has surged since the January 2024 approval of spot Bitcoin ETFs, which have collectively attracted over $28 billion in inflows**—including **$4.7 billion since November 6 alone, according to U.K.-based asset manager Farside Investors.
This momentum has spurred multiple asset managers to file for ETFs tied to alternative cryptocurrencies. Canary itself has been particularly active:
- In October, it filed for an XRP ETF, joining Bitwise Asset Management in seeking regulatory approval for XRP-based products.
- It also submitted an application for a spot Litecoin ETF, aiming to be the first U.S.-listed fund tracking LTC directly.
These filings reflect a strategic shift: while early crypto ETF efforts focused solely on market leaders, firms like Canary are now building diversified product suites to meet rising retail and institutional demand for broader digital asset access.
👉 See how diversified crypto ETF strategies could unlock new portfolio potential in 2025.
However, regulatory hurdles remain significant. For the HBAR ETF to launch, Canary must secure two key approvals:
- SEC clearance of its Form S-1 registration statement.
- Listing approval from a national securities exchange to trade the ETF shares publicly.
Notably, the current filing does not disclose a proposed ticker symbol or expense ratio—details typically revealed closer to launch or during public updates.
Frequently Asked Questions (FAQ)
What is HBAR?
HBAR is the native cryptocurrency of the Hedera Network, a distributed ledger platform using Hashgraph consensus technology. It is used for transaction fees, staking, and network security.
What is a spot HBAR ETF?
A spot HBAR ETF is an exchange-traded fund that directly holds HBAR tokens rather than futures contracts or derivatives. It offers investors transparent, real-time exposure to HBAR’s price movements.
Why is Canary’s HBAR ETF significant?
It would be the first U.S.-based ETF offering direct exposure to HBAR, expanding institutional investment options beyond Bitcoin and Ethereum into high-potential enterprise-focused crypto assets.
Is HBAR SEC-approved?
HBAR itself is not officially classified or approved by the SEC as a security or commodity. However, Canary’s ETF filing represents a step toward regulated investment products based on HBAR.
How does Hedera differ from blockchain platforms like Ethereum?
Hedera uses Hashgraph consensus instead of blockchain, enabling faster transaction finality (3-5 seconds), lower fees, and higher throughput—making it ideal for enterprise-grade applications.
When will the Canary HBAR ETF launch?
There is no confirmed launch date yet. The timeline depends on SEC review and exchange listing approval, which could take several months or longer.
👉 Stay ahead of crypto ETF developments with real-time market insights and analysis tools.
Looking Ahead: The Future of Crypto ETFs
The Canary HBAR ETF filing underscores a pivotal shift in the digital asset ecosystem: from niche speculation to structured, regulated investment products. As investor demand grows and infrastructure matures, we’re likely to see more ETFs covering mid-cap and utility-focused cryptocurrencies—especially those with strong enterprise backing like Hedera.
For financial advisors and retail investors alike, these products offer a compliant, accessible way to gain exposure without managing private keys or navigating exchanges. Moreover, they signal increasing legitimacy for innovative blockchain and DLT platforms operating at the intersection of finance, technology, and regulation.
With Canary leading the charge for HBAR, XRP, and Litecoin ETFs, the stage is set for a more diverse and resilient crypto investment market in 2025 and beyond.
Core Keywords: HBAR ETF, Canary Capital, Hedera Network, cryptocurrency ETF, spot crypto ETF, HBAR price, Hedera Hashgraph, enterprise blockchain