Grayscale Seeks SEC Nod for Sixth Altcoin ETF, Targeting Hedera

Crypto asset manager Grayscale Investments has filed for approval of a new spot Hedera (HBAR) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), marking its sixth altcoin-focused ETF. The filing, submitted on Monday, is a 19b-4 form, which is part of a two-step process to propose a crypto ETF to the SEC.

The SEC, under the leadership of acting chair Mark Uyeda, has already acknowledged and published filings for ETFs linked to altcoins, indicating a more supportive stance toward altcoin-based investment products. Katalin Tischhauser, Head of Research at Sygnum Bank, believes that the approval of multiple smaller assets for ETFs could pave the way for an index ETF.

Grayscale's other spot ETF filings include tracking the performance of Polkadot (DOT), XRP, meme coin Dogecoin (DOGE), Cardano (ADA), and Solana (SOL). The SEC has already acknowledged filings for the XRP, Dogecoin, and Solana ETFs, adding them to the Federal Register. The filings for the Polkadot and Cardano ETFs are still in the early stages of regulatory review.

The SEC's review process typically lasts 45 days from the date of publication in the Federal Register. During this period, the commission will consider the filings and invite public comments. Following this period, the SEC can either approve or reject the proposed rule changes or delay its decision, with the entire process potentially stretching to 240 days.

Grayscale is not the first asset manager to pursue a HBAR ETF. Last month, Nasdaq filed a 19b-4 form with the SEC to list a spot HBAR ETF on behalf of Canary Capital. As of now, the SEC is still in the process of reviewing the application, and no official approval has yet been granted. However, Bloomberg Senior ETF Analysts Eric Balchunas and James Seyffart have pointed out that both Hedera and Litecoin have "higher odds than others [ETFs] of approval."