Nasdaq's HBAR Trust Approved by SEC, Token Surges 7%

The United States Securities and Exchange Commission (SEC) has officially approved Nasdaq’s Rule 19b-4 filing for a commodity trust that includes HBAR. This trust structure is designed to provide investors with regulated exposure to the native currency of the Hedera Network, HBAR. This development marks a significant step towards institutional adoption, although it differs from a spot exchange-traded fund (ETF) as it does not allow direct redemptions. Consequently, shares can be sold and purchased at a premium or discount to the underlying asset’s value.

This trust directly holds HBAR, with its shares representing fractional ownership of the total HBAR holdings. Unlike traditional ETFs, this structure does not offer direct redemptions. This means that while investors can buy and sell shares of the trust, the price may not always match the true market value of HBAR. BNY Mellon Asset Servicing is set to oversee the administration and transfer agent duties of the trust. Meanwhile, CSC Delaware Trust Company will act as the trustee, and Coinbase Custody Trust Company will manage asset custody. Currently, Grayscale and Canary Capital are the only asset managers actively pursuing HBAR-based ETFs, signaling growing institutional interest in the asset.

While the SEC acknowledged the Nasdaq filing for the Grayscale Hedera Trust, it simultaneously delayed its decision on other cryptocurrency ETFs. This includes Grayscale’s XRP ETF and Cboe BZX Exchange’s spot Solana ETF. The regulator has extended the review period for these applications until May. This influx of applications has led to extended review periods for a range of crypto-related investment products.

Once the Securities and Exchange Commission recognized Nasdaq’s filing, HBAR received a positive market response. The token added more than 7% in the last 24 hours, reflecting investor confidence. Considering this acknowledgment, the SEC has begun a 21-day public comment period. The period allows industry players and the general public to offer their opinions on the proposal. Following the public opinion period, the SEC will determine whether or not to approve, deny, or extend the review period. The determination can be of substantial importance to the acceptance of HBAR and inclusion in institutional investor portfolios.

With maturing cryptocurrency regulations, new investment vehicles like commodity-based trusts and ETFs lead the way for increased adoption. Investors will be keenly watching the SEC’s approach to these filings in the coming months. This development underscores the growing institutional interest in digital assets and the potential for further legitimization of cryptocurrencies in the financial landscape.