Canary Funds has filed a registration statement with the U.S. Securities and Exchange Commission for a spot exchange-traded fund tied to Hedera's HBAR token. The filing, submitted as Form 424B3, marks the first-ever application for a spot HBAR ETF and aims to give investors direct exposure to the digital asset.
What the filing covers
The document, dated March 26, 2025, proposes an ETF that would hold HBAR tokens directly, rather than tracking futures contracts. If approved, the fund would trade on a major U.S. stock exchange, allowing buyers to get exposure to HBAR through a traditional brokerage account.
Canary Funds hasn't disclosed the exact ticker or listing exchange in the preliminary filing. The company is using Form 424B3, which is typically filed after the SEC has reviewed an initial registration and requested changes. That suggests the application has already moved beyond the earliest stage of SEC review.
Hedera runs a proof-of-stake network governed by a council of large enterprises, including Google, IBM, and Boeing. HBAR is used to pay transaction fees and secure the network through staking. The token has lagged behind larger cryptocurrencies in terms of U.S. exchange-traded products.
A spot ETF, if greenlit, could change that. Direct exposure through a regulated vehicle may draw institutional investors who have stayed on the sidelines because of custody or compliance concerns. More liquidity in the market could also help stabilize HBAR price swings and attract developers building on the network.
The filing comes as the SEC has grown more willing to approve crypto spot ETFs following a string of approvals for bitcoin and ether products starting in early 2024. Analysts expect a widening pipeline of altcoin ETF filings, though each faces its own regulatory hurdles.
What happens next
The SEC has a standard review period of up to 240 days from the date of publication in the Federal Register. The agency's Division of Investment Management will examine the filing for compliance with the Securities Act of 1933 and the Investment Company Act of 1940.
Canary Funds will need to address any SEC queries regarding custody of HBAR tokens, market surveillance, and valuation methodology. The company has not set a target launch date. Public comment periods are expected to begin within weeks, giving market participants a chance to weigh in.
