Canary Capital’s HBAR ETF nears SEC approval

A recent filing by Canary Capital has brought the market one step closer to a key milestone, the potential approval of a spot ETF tracking Hedera Hashgraph’s (HBAR) native token.

The submission has fueled optimism among investors and analysts, many of whom believe the U.S. Securities and Exchange Commission (SEC) could finally break its streak of delays and grant long-awaited approval.

On Tuesday, Canary Capital filed an amended registration statement for its proposed Canary HBAR ETF with the ticker symbol of HBR and a sponsor’s fee of 0.95%. The firm is also verifying an equivalent Litecoin ETF pending under ticker LTCC, with the same fee structure.

These last-minute details, tickers, and sponsor fees are typically the final steps before an ETF receives regulators’ blessing. Bloomberg’s Senior ETF Analyst Eric Balchunas drove that point home in a post on X, where he wrote that “those are the last things to get filled in before go-time.”

The 0.95% fee is “pricey compared with Bitcoin ETFs,” says Blockforce Capital founder and crypto asset manager Eric Ervin, but not for newer and more niche products entering the ETF space as a way to gain exposure to cryptos in an already crowded market.

The HBAR and Litecoin ETFs are on the 1-yard line, Bloomberg Intelligence’s James Seyffart said, suggesting that a green light will come as soon as the SEC is fully functioning again.

This positive new optimism is also backed by HBAR, Solana, and XRP ETFs, which have been listed on the Depository Trust, a technical step that precedes trading approval. The Nasdaq has also filed a Form 19b-4, the regulatory filing form required for the listing and trading of shares of the HBAR ETF once it has been greenlighted.

This frenetic blur of activity paints a picture of an ETF that is well past the drawing board phase and is just waiting for the ultimate say-so from one last regulator.

SEC delay slows momentum

However, in a surprising turn of events, the SEC has delayed its decision on Canary’s HBAR ETF. The next review date has now been extended to November 8, 2025, providing the agency with additional time to conduct its administrative reviews and internal assessments.

Industry watchers said that at first glance, the Canary’s HBAR ETF delay seemed more procedural than negative. It was not a rejection, but rather the same process, one market analyst said, with the SEC methodically considering all the proposed crypto ETF applications in its docket after being overwhelmed with new product submissions this year.

The delay also comes at a time when the US government is shut down, cutting off some of the SEC’s operations. Its contingency plan permits only a handful of employees to address “emergencies.” That includes some procedures, such as ETF approvals, which have been temporarily halted.

Nonetheless, the momentum for crypto ETFs was strong as news reportedly broke that the SEC had recently approved new listing rules designed to streamline the process of approving digital asset ETFs.

Crypto ETF market expands rapidly

The filing by Canary Capital is part of a wave of broader crypto ETF activity. On that same day, global investment firm GraniteShares applied for a suite of leveraged ETFs linked to Solana, XRP, and Ethereum. Last week, at least 70 other asset managers also filed similar applications, indicating a sharp rise in institutional demand for regulated crypto exposure.

The world’s crypto ETFs are setting a new record for total inflows. Worldwide crypto ETFs have attracted almost $5.95 billion in new investments just this month as Bitcoin hits new highs, according to Reuters. Some analysts believe this excitement is also fueled by speculation that the SEC will, at some point in time, greenlight more altcoin ETFs (like HBAR and Litecoin).

The approval of the Canary HBAR ETF would be a major win for the Hedera network, which touts itself as a faster, more environmentally friendly alternative to traditional blockchains. The ETF listing will also open up a larger market of institutional HBAR investors who prefer regulated investments.

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