- The SEC is reviewing Grayscale’s Hedera ETF proposal and has opened a 21-day public comment period.
- If approved the ETF will allow investors to gain exposure to HBAR without directly owning the cryptocurrency.
- Grayscale faces competition as Canary Capital has also filed for a Hedera ETF this year.
The U.S. Securities and Exchange Commission has acknowledged Grayscale’s application for a Hedera ETF. This starts a 21-day public comment period. After that, the SEC will decide to approve, reject, or extend the review process.
If approved, this ETF could increase investment in cryptocurrency. Investors could gain exposure to HBAR without directly owning the asset. Grayscale’s proposed ETF will track the price of HBAR. This could make it easier for more investors to access the digital asset.
Nasdaq has filed the application to list the Grayscale Hedera Trust. If approved, shares of the trust will trade under commodity-based trust share rules. This would allow regulated access to HBAR, which is known for its blockchain-alternative technology.
Key Companies Involved
BNY Mellon Asset Servicing is expected to act as the administrator and transfer agent. Coinbase Custody Trust Company will serve as the custodian. CSC Delaware Trust Company will oversee the trust’s management.
Grayscale’s filing follows the SEC’s approval of Bitcoin and Ethereum ETFs. Nasdaq believes its surveillance-sharing agreement with Coinbase Derivatives helps protect investors. This agreement played a key role in past ETF approvals. Nasdaq says it will help ensure market integrity.
SEC Review Process
The SEC has opened the public comment period. Investors, financial institutions, and industry experts can submit feedback. The SEC will then approve or reject the application or extend the review.
SEC acknowledgment does not mean approval. The SEC has raised concerns about cryptocurrency risks. However, the recent approval of Bitcoin and Ethereum ETFs shows its stance may be changing.
Crypto ETF Competition
Grayscale is not the only company seeking a Hedera ETF. Canary Capital also filed a similar application this year. Grayscale continues expanding its digital asset products. It seeks approval for ETFs based on Polkadot, XRP, Dogecoin, Solana, and Cardano.
If approved, the Grayscale Hedera ETF would be its sixth altcoin investment product and shares of the trust would trade on Nasdaq. Grayscale Operating and Grayscale Investments would sponsor the trust. CSC Delaware Trust Company would be the trustee.
