Emma Nelson 
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s request to list a Hedera (HBAR) exchange-traded fund (ETF) on the Nasdaq stock exchange, marking an important development in the cryptocurrency investment space. This acknowledgment opens the door to a 21-day public comment period, during which both market participants and the general public are invited to share their views. After this period, the SEC will decide whether to approve, disapprove, or potentially extend the review process for the ETF.
US SEC
This development is significant because the SEC’s decision could have far-reaching implications for how cryptocurrencies are incorporated into traditional financial markets. If approved, it would allow investors to gain exposure to Hedera’s native token, HBAR, without the need to directly purchase and manage the asset. The approval of a Hedera ETF could pave the way for more institutional and retail investors to enter the space, particularly those who prefer not to directly hold cryptocurrencies.
Grayscale’s Hedera ETF Proposal and Structure Grayscale’s proposed ETF aims to track the price of Hedera’s native token, HBAR. The filing was submitted to Nasdaq, which has requested approval from the SEC to list the Grayscale Hedera Trust. If approved, the shares of the trust would be traded under the rules for commodity-based trust shares, similar to other cryptocurrency ETFs.
BNY Mellon Asset Servicing has been designated as the administrator and transfer agent for the trust, while Coinbase Custody Trust Company will act as the custodian. Additionally, CSC Delaware Trust Company is expected to serve as the trustee. These entities will play vital roles in ensuring that the trust operates smoothly and in accordance with all regulatory requirements.
This ETF filing comes on the heels of the SEC’s approval of similar Bitcoin and Ethereum spot ETF applications. Nasdaq has emphasized its confidence in the process, citing its surveillance-sharing agreement with Coinbase Derivatives as a key factor in ensuring investor protection. This agreement, coupled with Nasdaq’s membership in the ISG (Intermarket Surveillance Group), has been instrumental in securing the approval of past ETFs and is seen as a crucial element in maintaining market integrity.
The Public Comment Period and SEC Decision-Making Process With the SEC’s acknowledgment of the filing, a 21-day public comment period has now begun. During this time, the public and market participants are encouraged to provide feedback on the proposal. This is a critical part of the SEC’s standard process for reviewing ETF filings, ensuring that all relevant viewpoints are considered before a final decision is made.
At the end of the comment period, the SEC will decide whether to approve or disapprove Grayscale’s application, or it may initiate further review proceedings. While the SEC’s acknowledgment of the filing is an important milestone, it does not guarantee that approval will be granted. The SEC has previously expressed concerns about the potential risks associated with cryptocurrency products and has taken a cautious approach to approving such offerings.
However, with the recent approvals of Bitcoin and Ethereum spot ETFs, there is speculation that the SEC’s stance toward cryptocurrency investment products may be evolving. Grayscale is not alone in its pursuit of cryptocurrency ETFs. Other firms, including Canary Capital, have filed similar applications for Hedera ETFs. Furthermore, Grayscale has been actively expanding its digital asset portfolio, seeking approval for ETFs based on assets such as Polkadot (DOT), XRP, Dogecoin (DOGE), Solana (SOL), and Cardano (ADA).
Potential Impact on Hedera Price As for Hedera’s price, it has experienced notable fluctuations in recent weeks. After reaching a high near the $0.25 mark, which signaled a bullish trend, the price has since retraced and is currently testing support levels in the $0.18 to $0.20 range. If these levels hold, there may be a chance for a price reversal or consolidation over the next few weeks.
Recent technical indicators, such as the Moving Average Convergence Divergence (MACD), suggest that the momentum for HBAR remains bullish, with the blue line above the orange signal line. However, the shrinking histogram suggests a weakening of this momentum, indicating that the upward trend might lose steam in the short term.
The Relative Strength Index (RSI) currently sits at 46.60, signaling neutral market conditions with no clear overbought or oversold conditions. A recent dip toward 41.22 indicates slight bearish pressure, but it has not yet reached the oversold zone, meaning the market remains in a balanced state for now.
In summary, the proposed Hedera ETF filing by Grayscale has the potential to significantly affect the cryptocurrency investment landscape, particularly for those looking to gain exposure to HBAR without directly holding the asset. Whether the SEC grants approval for the ETF will be a key factor in determining the future of Hedera in the broader financial market. If the ETF is approved, it could lead to increased institutional and retail interest in HBAR, potentially driving its price higher. However, the market remains cautious, and the SEC’s final decision will be crucial in determining the next steps for both Grayscale and Hedera.
