HBAR ETF Approved, Yet Altcoin Skepticism Proves a Tough Sell

Hedera Hashgraph's native token HBAR fell 6% in 24 hours as of October 28, 2025, despite the launch of the first U.S. spot exchange-traded fund (ETF) for the asset, a development detailed in the SEC poised to approve HBAR ETF. The Canary HBAR ETF, listed on Nasdaq, drew minimal initial inflows, trading just $8 million on its debut, a stark contrast to the $56 million generated by the concurrent Solana ETF, as reported in the TradingView coverage. The muted response highlights lingering skepticism in the altcoin market, even as regulatory milestones like the SEC's greenlight for the HBAR ETF signal growing institutional acceptance, as noted in the Yahoo article.

The ETF's launch marked a pivotal moment for Hedera, which touts a governing council of Fortune 500 firms like IBM and Boeing, according to the Canary ETF report. Gregg Bell, Hedera's chief business officer, called the approval a "watershed moment," emphasizing the network's role in enterprise-grade tokenization and sustainability markets, as the Yahoo article reported. Yet, HBAR's price action tells a different story. Technical indicators, including a death cross and declining on-chain metrics, suggest bearish momentum. The token's price slid from $0.2096 to $0.191, erasing gains made ahead of the ETF's approval, according to a HBAR price analysis.

Analysts remain cautiously optimistic, according to a Bitget explainer. Eric Balchunas of Bloomberg noted that while HBAR's debut underperformed compared to Solana's, the ETF still provides a regulated gateway for institutional investors—a factor that could drive long-term adoption, as covered by TradingView. Meanwhile, critics point to broader market dynamics. The ETF's quiet launch coincided with a broader altcoin slump, as Litecoin's ETF attracted only $1 million in trading volume, as the Canary ETF report showed. "Investors are taking a wait-and-see approach," said one strategist, citing ongoing volatility linked to SEC regulatory delays and macroeconomic uncertainty, the Canary article added.

Hedera's fundamentals, however, remain compelling. The platform's hashgraph consensus mechanism and partnerships with major corporations have positioned it as a leader in enterprise blockchain solutions. Additionally, USDC's rapid adoption on Hedera—surpassing $172 million in issuance—has bolstered liquidity, the Bitget explainer noted. Analysts like RBC Capital and Piper Sandler have raised price targets for HBAR, betting on its potential to rebound as institutional demand stabilizes.

Despite the near-term headwinds, the HBAR ETF's approval underscores a broader trend: regulated access to altcoins is gaining traction. With seven XRP ETF applications pending and more altcoin ETFs in the pipeline, the market may yet reward early adopters. For now, HBAR's path remains uncertain, balancing technical headwinds against its strategic positioning in the evolving crypto ecosystem.