Nasdaq's ETF Filing Boosts Hedera's Approval Hopes Amidst Crypto Demand Surge

Nasdaq has filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to list and trade Grayscale’s Spot Hedera Exchange-traded fund, marking a significant step towards the potential approval of a Hedera ETF. This development comes amidst increased institutional demand for crypto assets and the growing popularity of exchange-traded funds (ETFs).

The filing by Nasdaq on behalf of Grayscale is the second phase before the SEC’s acknowledgment, which will be published in the federal register awaiting final approval. This recent filing follows another Hedera ETF submission by Nasdaq on behalf of Canary Capital, positioning Hedera favorably among altcoins for potential approval based on its network development and ecosystem progress.

If approved, the ETF would facilitate investors to gain exposure to HBAR without directly owning the crypto, potentially boosting demand and positively impacting HBAR’s growth. However, despite the positive news, HBAR has been experiencing bearish sentiments, with a 9.18% decline in the past 24 hours, trading at $0.2272.

The decline in HBAR’s price suggests a lack of confidence among investors, who appear to be closing their positions to lock in profits or are being forcefully liquidated as the market retraces. The prevailing market conditions indicate that investors view ETFs as a long-term bet, and these funds must first secure SEC approval to have a real impact on Hedera’s price movements.

In the short term, the markets remain bearish, with HBAR potentially declining to $0.21. However, if investors interpret the filing as a bullish signal and accumulate, Hedera could reclaim $0.25. The approval of Hedera’s ETFs could be a game-changer for the altcoin, especially as its network continues to struggle with declining active accounts and usage.