Grayscale Investments has taken a significant step in expanding its crypto product offerings by filing a 19b-4 with the US Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) centered on Hedera (HBAR). This filing, made through Nasdaq Stock Market LLC, comes as Grayscale seeks to add more altcoin-related ETFs to its roster.
The proposed Hedera ETF will track the price of HBAR, the native cryptocurrency of the Hedera blockchain, allowing investors to gain exposure to the token without directly holding it. If approved, the ETF would trade on the Nasdaq, similar to other Grayscale products such as the Bitcoin and Ethereum ETFs. While details regarding the custodian have not been disclosed, Coinbase Custody is expected to be tapped, given its role in managing other Grayscale funds like GBTC and ETHE.
Grayscale’s move follows Canary Capital’s efforts to launch an HBAR ETF with the SEC earlier this year, positioning Grayscale as a strong contender in the growing altcoin ETF market. Grayscale has been actively pursuing ETF filings, including products for Cardano, Solana, and XRP.
The firm’s confidence in securing approval stems from its previous success with the SEC, particularly following its victory in a lawsuit that led to the approval of spot Bitcoin and Ethereum ETFs. Grayscale’s history with the SEC has given it a significant edge in its ongoing push for more altcoin-based ETFs.
Beyond Grayscale, other asset managers, including Rex-Osprey and Tuttle Capital, are also seeking SEC approval for crypto ETFs, such as one tracking Dogecoin. While some popular memecoins, like TRUMP and MELANIA, have ETF proposals, their chances of approval remain uncertain. The SEC has become more open to the crypto market recently, as seen in the settlement of the Kraken lawsuit, which could pave the way for more crypto ETF approvals in the future.
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