Nashville-based asset manager Canary Capital has filed an S-1 form for an exchange-traded fund (ETF) tied to HBAR, the native asset of the Hedera blockchain. This move comes shortly after Canary previously filed for an HBAR trust and adds to its growing selection of spot ETFs connected to Litecoin, XRP, and Solana. As a result of this news, HBAR experienced a nearly 28% surge in value, making it the 48th largest cryptocurrency by market cap with a fully diluted value of around $3.3 billion. ETF Store CEO Nate Geraci had predicted an increase in filings for crypto-related ETFs this week, fueled by the anticipation of a more crypto-friendly environment post-elections in the United States.
Despite expectations for more prominent assets like Cardano, Solana, and XRP to be the focus of new filings for ETFs, the surprise application for an HBAR ETF by Canary Capital caught some market analysts off guard. Geraci humorously expressed his astonishment at the filing for HBAR, raising eyebrows within the industry. Analysts like Bloomberg senior ETF analyst Eric Balchunas commented on the unexpected nature of the filing, referring to it as the “post-Trump spaghetti cannon in effect.” Balchunas also speculated that a spot Dogecoin (DOGE) ETF could potentially be the next innovative move by companies involved in crypto ETFs.
Balchunas’ colleague, Bloomberg ETF analyst James Seyffart, admitted to knowing little about Hedera, emphasizing the novelty and uniqueness of the HBAR ETF application. This lack of familiarity with Hedera among industry analysts suggests that Canary Capital’s decision to focus on HBAR may be a strategic choice to differentiate themselves in the competitive ETF market. With the increasing popularity of cryptocurrency and blockchain technology, companies like Canary Capital may be looking to tap into niche markets like Hedera to establish themselves as industry leaders in the growing world of digital assets. Ultimately, the filing for an HBAR ETF by Canary Capital signifies a bold and unexpected move that could potentially pave the way for more unconventional cryptocurrency ETF offerings in the future.
