SEC Opens Comment Period on Grayscale’s HBAR ETF Listing

The U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale’s application to list a Hedera (HBAR) ETF on the Nasdaq stock exchange. This acknowledgment initiates a 21-day public comment period, during which the SEC will evaluate whether to approve, disapprove, or proceed with further review of the application. This development is significant for the cryptocurrency investment landscape, particularly for those seeking exposure to HBAR without directly owning the asset.

Grayscale’s proposed ETF aims to track the price of Hedera’s native token, HBAR. The filing was submitted by Nasdaq, which has requested SEC approval to list the Grayscale Hedera Trust. If approved, the shares of this trust would trade under commodity-based trust share rules. Key players involved in this process include BNY Mellon Asset Servicing, which will act as the administrator and transfer agent for the trust, Coinbase Custody Trust Company as the custodian, and CSC Delaware Trust Company as the trustee.

This filing follows the SEC’s recent approval of similar applications for Bitcoin and Ethereum spot ETFs. Nasdaq has emphasized its surveillance-sharing agreement with Coinbase Derivatives, facilitated through ISG membership, as a critical factor in ensuring investor protection and market integrity. This agreement has been instrumental in past ETF approvals and is expected to play a similar role in this case.

Upon acknowledging the filing, the SEC has opened a 21-day public comment period, allowing market participants and the general public to submit feedback. This step is part of the SEC’s standard procedure for reviewing ETF filings. After this comment period, the regulator will decide whether to approve or disapprove the application or initiate further proceedings. While SEC acknowledgment is a significant milestone, it does not guarantee approval, as the SEC has previously expressed concerns about the risks associated with cryptocurrency products.

However, the recent approval of Bitcoin and Ethereum spot ETFs suggests a potential shift in the regulator’s stance on crypto investment products. Grayscale is not the only firm pursuing cryptocurrency ETFs; Canary Capital also filed a similar application for a Hedera ETF earlier this year. Additionally, Grayscale has been actively expanding its digital asset portfolio, seeking approval for ETFs based on assets like Polkadot (DOT), XRP, Dogecoin (DOGE), Solana (SOL