Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) for a spot Hedera (HBAR) exchange-traded fund (ETF), aiming to list the new fund on Nasdaq.
Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) for a spot Hedera (HBAR) exchange-traded fund (ETF), aiming to list the new fund on Nasdaq. This is part of a broader push by Grayscale to expand its ETF offerings beyond Bitcoin and Ethereum, with HBAR becoming its sixth altcoin-focused ETF filing. The process for approval involves two steps, with the SEC first acknowledging the filing before it is published in the Federal Register, starting the formal review. Bloomberg analysts Eric Balchunas and James Seyffart suggest that HBAR, along with Litecoin, has a better chance of approval compared to other altcoins due to their regulatory progress.
Grayscale has previously filed for ETFs involving other altcoins, including Dogecoin (DOGE), XRP, Cardano (ADA), and Solana (SOL), which are still under review. Nasdaq made a similar filing for an HBAR ETF just a week before Grayscale’s, highlighting growing interest in the token. Though there have been no approvals yet, Hedera's increasing popularity, backed by corporate giants like Google, IBM, and Boeing, adds to its appeal as an investment-grade asset.
The SEC, under Acting Chair Mark Uyeda, has been more open to altcoin ETFs, partly due to the Trump administration’s more crypto-friendly policies. This shift has led to a rise in crypto ETF filings, with hopes that approving smaller altcoins will create the foundation for an index ETF in the future. A source close to the matter indicated that such approvals could set the stage for broader ETF acceptance in the coming months.
The Grayscale HBAR ETF filing is one of several that the SEC is considering. Grayscale is also working to convert its Dogecoin Trust into an ETF, with that proposal still under review. Additionally, the SEC is reviewing an XRP ETF from Grayscale. These developments could influence the future of crypto ETFs in the U.S., particularly if they are approved.
Approval for these ETFs could take up to 240 days, as the SEC’s review process includes an initial 45-day period for public comment. While Bitcoin ETFs were approved in 2024, altcoin ETFs still face challenges, particularly related to concerns about market manipulation and liquidity. The SEC has also delayed its decision on Cboe’s request to list options for Ether ETFs, pushing the decision to May.
The Grayscale HBAR ETF and other altcoin proposals mark an important step in the ongoing process of making crypto more accessible to traditional investors. If approved, these products could significantly increase institutional adoption and broaden the market for altcoin investments.
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