Nasdaq has filed a new exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC) called the Canary HBAR ETF. The ETF will hold HBAR, the native currency of the Hedera network. This is the latest in a series of filings by exchanges and asset managers seeking to list ETFs related to alternative cryptocurrencies (altcoins).
The Rise of Cryptocurrency ETFs
Last November, Canary Capital – the asset manager behind the Canary HBAR ETF – filed a proposal with the SEC with the goal of making HBAR more accessible to investors. Hedera is a blockchain platform that uses hashgraph distributed ledger technology, known for its high scalability and low transaction fees.
Canary Capital is not stopping at HBAR, but is also pursuing ETFs related to many other altcoins such as Solana (SOL), Litecoin (LTC), and XRP. In addition, a number of other issuers have also proposed ETFs for Polkadot (DOT), Dogecoin (DOGE), and Official Trump (TRUMP).
SEC and Changes in Stance on Cryptocurrency
The SEC will need time to review and approve these applications before ETFs can be listed and traded. The agency has recently changed its stance on cryptocurrencies, especially after former President Donald Trump was re-elected.
In February, Franklin Templeton launched the first ETF that holds both spot Bitcoin and Ether, following Hashdex's launch of the Nasdaq Crypto Index US ETF (NCIQ). This move shows a shift in policy from the SEC, which has been quite tough on the cryptocurrency industry in the past.
Altcoin ETF Approval Rates High
According to Bloomberg Intelligence, the approval rates for major altcoins are trending positively. Specifically, they estimate the possibility of Litecoin ETF approval at 90%, Solana at 70%, and XRP at 65%. However, they have not made an official prediction for HBAR ETF.
Under the previous administration, the SEC filed more than 100 lawsuits against crypto companies for alleged securities law violations. However, in 2024, the agency approved spot Bitcoin and Ether ETFs, marking a significant shift in its approach to the crypto industry.
Cryptocurrency ETF Outlook in 2025
Nasdaq’s filing for the Canary HBAR ETF represents an expansion of the crypto ETF market, opening up new investment opportunities for institutional and retail investors. If the SEC continues the trend of approving altcoin ETFs, 2025 could see a new wave of crypto investment funds, helping the market grow even stronger.
