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Grayscale Files 19b-4 for Hedera ETF with US SEC. Grayscale Investments, a leading American asset management firm, has officially filed a 19b-4 with the United States Securities and Exchange Commission (SEC) in an effort to list and trade the Hedera ETF. This move represents a significant step for Grayscale as it continues to expand its portfolio of crypto-related products. The filing was made through Nasdaq Stock Market LLC on behalf of Grayscale, highlighting the firm’s ongoing push to increase its presence in the growing cryptocurrency space.
Grayscale Hedera ETF and Its Significance
The newly proposed Grayscale Hedera ETF is designed to track the underlying price of HBAR, the native currency of the Hedera blockchain. This filing, known as the 19b-4, is an essential part of the approval process for any exchange-traded fund (ETF). If the filing is approved, it would provide qualified investors with a way to gain exposure to HBAR without having to directly hold the cryptocurrency. This would further broaden the investment possibilities for those interested in the Hedera ecosystem while making it easier for institutional investors to get involved in the market.
Once approved, the Hedera ETF would be traded on the Nasdaq exchange, much like other products from Grayscale Investments. Although the custodian for the fund has not been disclosed in the filing, it is expected that Coinbase Custody may be the chosen custodian, as Grayscale has used Coinbase Custody for other products, such as its GBTC and ETHE funds.
Grayscale’s Position in the Crypto ETF Market
Grayscale’s push for a Hedera ETF is not entirely new, as the firm has been working on similar projects for months. As early as January, Grayscale showed interest in launching a Hedera ETF, signaling its intent to expand its offering of crypto ETFs. In the past few weeks, other entities like Canary Capital have also been advocating for an HBAR ETF with the SEC, meaning Grayscale’s product would not be the first of its kind. Nevertheless, Grayscale remains a major player in the crypto ETF space and continues to maintain a strong foothold in the industry.
Grayscale’s Aggressive Approach with Other Crypto ETFs
Over the last several weeks, Grayscale Investments has made significant moves by filing for a series of crypto ETFs, including those for Cardano (ADA), Solana (SOL), and XRP. The firm’s proactive stance in the ETF space has positioned it at the forefront of efforts to get approval for more altcoin ETFs, as it seeks to expand its suite of crypto investment products. Grayscale’s history with the SEC, which includes a landmark victory in a lawsuit forcing the regulator to reconsider its decision on Bitcoin ETF applications, strengthens its position as a leader in the crypto ETF market.
Following that legal victory, the SEC approved spot Bitcoin ETFs in January 2024, followed shortly by spot Ethereum ETFs. With these approvals, Grayscale has already seen considerable success in the ETF market and is now aiming to extend this success to a wider range of digital assets, including altcoins.
The SEC’s Growing Acceptance of Crypto ETFs
The SEC has shown signs of becoming more accommodating to the crypto market, especially after the closure of the Kraken lawsuit. In addition to Grayscale’s filings, other asset managers like Rex-Osprey and Tuttle Capital have also submitted filings for crypto ETFs, such as Dogecoin ETFs. The regulator’s increased openness is a positive signal for the future of crypto ETFs, though the prospects for memecoin ETFs, such as those for TRUMP, MELANIA, and BONK, remain unclear.
Despite this, many industry analysts believe that the growing interest in altcoin ETFs and the SEC’s recent actions suggest that more crypto ETFs could be approved in the near future. As the market evolves, these developments may lead to broader adoption of digital assets in institutional investment portfolios, paving the way for further integration of cryptocurrencies into traditional financial markets.
