Nasdaq-Listed HBAR ETF Filing Offers A New Injection Of Life For Altcoin Investors

Key Takeaways:

• The Canary HBAR ETF could give investors another way to access Hedera’s HBAR token as Nasdaq has filed to list the ETF with the SEC.
• The submission is an indication of a rising pattern in the number of altcoin ETF proposals, possibly marking the beginning of a new era in the crypto investment scene.
• The SEC has shown increased openness to crypto investment products versus prior years, given adoption of prior Bitcoin and Ether ETF approvals.

Potentially transformative moments in the digital asset stage can soon be afoot as Nasdaq finally filed Form 19b-4 with the U.S. Securities and Exchange Commission (SEC) to seek authorization to list and trade shares of the Canary HBAR ETF. The proposed fund would seek to track the price of HBAR, the native cryptocurrency of the Hedera network, in real time, potentially widening access for investors looking to trade altcoins. The filing underscores the growing institutional appetite for digital assets, which could smooth the path to wider acceptance of investment vehicles based on alternative cryptocurrencies.

And there’s the 19b-4 $HBAR filing from @CanaryFunds/@Nasdaq. https://t.co/lUbNguhkLl pic.twitter.com/3nPXGIzsWl

— Eleanor Terrett (@EleanorTerrett) February 24, 2025

Exploring the HBAR ETF Launch and its Meaning

This is more than just another ETF filing — it could be a validation of altcoins as legitimate investments. This comes just a month after the first HBAR Trust in the United States completed its formation, announced by Canary Capital in October 2024, followed by an S-1 registration statement for an HBAR ETF filed in November. These developments are clearly indicative of a coordinated effort to provide investors with a compliant means to gain exposure to HBAR, a digital currency currently sitting at a notable place in the digital asset market capitalization rankings.

Noting the strength of the network itself in explaining Canary Capital’s thinking behind the HBAR Trust, CEO Steven McClurg said, “As the most used network by transaction count, Hedera is a prime example of the type of enterprise technology that sits at the intersection of crypto and real-world scalability.” This focus on the practical uses of the technology could be key to determining the outcome of the SEC’s final ruling. We are waiting to see specifics on the US regulators’ counter-arguments, yet we expect that if proving their value in real-world terms is a compelling argument as regulators assess their duty of care to a broad marketplace (not just looking at one single asset class).

A Wider Lens: The Rise of Altcoin ETFs

This particular filing with the Nasdaq shouldn’t be viewed as the exception, but the harbinger of more general movement towards ETFs with multiple altcoins in the lineup. Canary Capital has expanded its investment pool, demonstrating its confidence in the increasing institutional adoption of digital assets. The firm has also filed for spot ETFs on assets like XRP, reflecting this broader investment strategy. The other market players have also expressed that they would like to launch ETFs in any shape or form, based on popular cryptocurrencies, like Polkadot and Dogecoin, to the more obscure digital assets, like Official Trump (TRUMP), or any other PausableToken. Such moves highlight growing interest from investors looking for more nuanced approaches to cryptocurrency investing, especially beyond Bitcoin and Ether, the two biggest cryptocurrencies in the world.

This emerging trend indicates the maturing nature of the crypto market. It would only be natural that as more projects deliver tangible use-cases and institutional demand accelerates the need for regulated investment products serving these assets GAINS. This evolution reflects an increased recognition of what blockchain technology has to offer and the will to engage with it through well-designed financial instruments.

More News: SEC Acknowledges Grayscale’s XRP & Dogecoin ETF Filings: A Game Changer or Regulatory Roadblock?

Understanding the Complexity of the Regulatory Landscape

The SEC approval is the linchpin here in this whole process. The regulatory framework of crypto ETFs has been a fast-changing space with an initial phase where the SEC was cautious. Under former President Joe Biden, the SEC filed multiple lawsuits against crypto firms for securities law violations. In 2024, however, the approval of spot Bitcoin ETFs proved to be a game-changer, suggesting that the agency’s attitude may be changing.

The granting of approval to spot Bitcoin ETFs had a transformative effect and signaled a significant shift for the SEC to engage crypto-based products despite previous privacy over the potential of shady market practices and the need for stronger investor protections. As a result of this decision, the way was paved for future crypto ETF applications, giving hope to those looking for more accessible and regulated means of investing in digital assets.

Just to cement this momentum toward cryptocurrency ETFs, Franklin Templeton recently filed for an ETF that combines both Bitcoin and Ether. This combination has put the SEC under mounting pressure to clear more altcoin ETFs, a decision that could transform the entire crypto investment landscape.

In fact, even Bloomberg Intelligence has suggestively assigned probabilities to the likelihood of approval for specific altcoin ETFs, with Litecoin at 90%, Solana at 70%, and XRP at 65%. It should be noted that Bloomberg have not yet provided an estimate for the HBAR ETF, though the fact that such estimates are even produced means that the market is seeing approval of altcoin ETFs as a potential event to come in the not too distant future.

Keep in mind that the SEC described Litecoin as a commodity in its lawsuit against KuCoin, and that made a potential Litecoin ETF more likely than not. That makes the role of regulatory clarity in getting the SEC to approve a crypto-related investment product clear.

Follow the Market’s Reactions

News of Nasdaq’s filing initially spurred the market higher. On the day of the announcement, the price of HBAR witnessed an intraday increase of up to 9%, hitting $0.23 per unit, with trading volume peaking at $377.4 million within the past 20 days. This immediate price boost indicates the extent of excitement surrounding the possibility of an HBAR ETF.

The price rally, however, was subsequently tempered, indicating market caution. This cautious approach likely reflects the uncertainty that persists in the regulatory landscape, as investors were seemingly waiting for additional signals of regulatory approval before committing fully to HBAR.

Alternative Price Predictions for HBAR

This catalyst could inject new momentum into HBAR price action, according to analysts, following Nasdaq’s filing. If the SEC approves the Canary HBAR ETF, it might lead to a surge in institutional investment in HBAR, potentially driving up the price.

Technical analysis-wise, the price of HBAR is currently trying to break through the resistance created by the midline of the Bollinger Bands, as well as the 20-day simple moving average (SMA). If HBAR clears this resistance level, we could see a spike towards the upper Bollinger Band at $0.2419, a significant resistance area that, once concentrated on, could allow its move towards $0.25 faster.

On the flipside, should HBAR struggle to sustain this bullish trend, then it may well fall back down towards its immediate support of $0.2059, which coincides with the lower Bollinger Band.

Technical indicators point to a slow recovery in sentiment. Diminishing bearish momentum is visible on the MACD histogram, and the MACD line is curving up towards a potential bullish crossover. Thus, the combination of these indicators with the increasing trading volume suggests a potential bullish breakout a bullish leg-up for the HBAR price in the coming sessions.

The Road Ahead

As this process unfolds, the crypto community is paying close attention. The SEC’s final ruling could drastically affect the entire altcoin space. If the HBAR ETF comes to pass, it could signal the start of a new era when it comes to altcoins and investment products, allowing investors to gain exposure to a wider variety of digital assets.

With greater regulatory acceptance and institutional involvement, the cryptocurrency market is entering this different stage in its evolution, which can be life-changing in terms of providing greater stability, liquidity and mainstream adoption.

Canary Capital’s Growing Portfolio

Canary Capital just unveiled the Canary AXL Trust, an investment vehicle for institutions and accredited investors looking for secure exposure to AXL, the native token that powers Axelar Network’s blockchain interoperability platform. This is a ground-breaking initiative focused on blockchain interoperability.

This is a full example: Axelar is a critical component of the cross-chain communication infrastructure, allowing decentralised applications across blockchains to communicate with one another. An investment vehicle that targeted AXL specifically could attract investors who are bullish on the future of an inter-blockchain, hyperconnected ecosystem. This fund is a testament to Canary Capital’s commitment to finding new investment opportunities in crypto that adapt to the changing needs of the market.

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