Nasdaq Seeks SEC Approval for Grayscale's HBAR ETF

Nasdaq has submitted a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) seeking approval to list and trade shares of the Grayscale Hedera Trust (HBAR). This move is a standard step in the process of approving an exchange-traded fund (ETF) based on HBAR.

The filing classifies the shares as Commodity-Based Trust Shares under Nasdaq Rule 5711(d), aligning them with regulated investment vehicles like spot Bitcoin (BTC) ETFs. This development is part of a series of efforts to bring Hedera into the regulated financial spotlight. The proposal was submitted under Section 19(b)(1) of the Securities Exchange Act of 1934, allowing exchanges to request rule changes to list new financial instruments.

The filing states that the proposed rule change is designed to perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. It is expected to facilitate the listing and trading of shares that will enhance competition among market participants, to the benefit of investors and the marketplace.

Nasdaq's move follows a similar application on behalf of Canary Capital, another asset manager pursuing an HBAR-based ETF. Canary Capital first submitted an S-1 application on November 12, 2024, followed by a 19b-4 application in late February, marking its own advancement in the ETF approval pipeline.

At present, neither Grayscale's nor Canary Capital's HBAR ETF proposal has been published in the Federal Register, indicating that both remain in a preliminary review stage. The SEC is currently evaluating whether the filings meet procedural and completeness requirements before determining the next steps. Once published, the proposals will enter a 45-day initial review period, during which the SEC can approve, deny, or extend the evaluation timeline. If the SEC needs more time, it may extend the review process for up to 240 days before making a final decision.

If approved, the Grayscale and Canary Capital HBAR ETFs would offer investors a regulated pathway to gain exposure to HBAR without directly holding the asset. This reflects a growing trend of institutional interest in cryptocurrency-based investment products.

While HBAR previously saw a fleeting 10% price surge following the news of Nasdaq's filing for