Canary Capital has taken a significant step towards the introduction of a Hedera exchange-traded fund by submitting a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) via The Nasdaq Stock Market LLC. This development comes after Canary Capital became the first crypto investment firm to file an S-1 registration for Canary HBAR ETF in November. The fund aims to offer investors exposure to the native asset of the Hedera Network.
The 19b-4 filing is a crucial part of a two-stage process for proposing a crypto ETF to the SEC. Upon recognition by the SEC, the filing will be published in the Federal Register, thereby launching the agency’s approval process.
Hedera is a globally recognized decentralized public network that leverages the Hashgraph consensus algorithm to enable swift and secure transactions. Unlike most cryptocurrencies, Hedera is controlled by a council comprising renowned companies and organizations tasked with decision-making and token distribution.
As per the filing, “Even though the primary objective of the Hedera Network is not to function as a payment system or store of value like most public distributed ledger technology (DLT) networks, it necessitates a cryptocurrency to operate efficiently and encourage consensus and network behavior.”
Recent estimates by Bloomberg analysts suggest that Litecoin ETFs have the highest likelihood of approval (90%) among the wave of spot crypto ETFs. After Canary Capital’s 19b-4 filing for their HBAR ETF, Eric Balchunas of Bloomberg stated, “This follows their amended S-1 last week (which indicates SEC’s feedback, giving HBAR and Litecoin the best chances and the front-runner position among the current batch of altcoin ETF filings).”
Following this news, the price of Hedera’s token witnessed a slight surge on Monday, trading approximately at $0.22, according to The Block’s HBAR price data.
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