Nasdaq Awaits SEC’s Approval To Launch HBAR ETF

Nasdaq has intensified efforts to stamp its feet in the cryptocurrency exchange-traded funds (ETFs) market. The exchange is seeking to list Canary HBAR ETF after filling an application with the US Securities and Exchange Commission (SEC). The proposed ETF will be supported by HBAR, Hedera Network’s native token, according to the application.

This recent development is coming when the SEC is receiving several applications for ETFs from exchanges and issuers that want to launch altcoin ETFs. Before trading can begin, the SEC must now carry out a review of the ETFs and ensure subsequent approvals.

Asset Managers Seek Modifications For Existing ETFs

Canary Capital is the asset management fronting the proposed ETF. The manager filed to the SEC in November seeking approval for the ETF. According to the company, the fund will be providing investors with exposure to HBAR.

Canary has applied for ETFs linked to other altcoins, including Solana. This reflects the high demand for crypto investment products.

The filing from Nasdaq is coming as several exchanges and issuers are pushing for the expansion of crypto ETFs. While some exchanges are filing for ETFs linked to Solana, others are seeking approvals for ETFs tied to crypto assets like Official Trump (TRUMP) and Polkadot.

Also, asset managers are waiting for the SEC to approve the modification of existing ETFs, including in-kind redemptions and staking options.

The way the SEC sees cryptocurrency has changed following President Donald Trump’s election for the second time. The change has led to the launching of two ETFs in February. Last week, Franklin Templeton launched an ETF linked to both Ether and Bitcoin. This comes after the debut of the Hashdex’s Nasdaq Crypto Index US ETF on February 14.

Issuers Take Advantage Of SEC’s Recent Stance Of Crypto ETFs

More crypto approvals are expected in the coming months as the SEC continues to relax the regulatory environment. The possibility of Solana and Litecoin ETFs is about 70% and 90%, respectively.

Also, a Bloomberg Intelligence report noted that there is a 60% possibility of an XRP ETF gaining approval in the U.S. However, the likelihood of an HBAR ETF still remains unclear, as an estimate has not been provided by Bloomberg yet.

The recent stance by the SEC on crypto ETFs is in contrast to its previous stance before the US Presidential Elections. The regulator filed several lawsuits against crypto companies during President Biden’s administration.

The SEC claimed that the securities were violating security laws. Last year, the regulator rejected several proposals for ETFs backed by digital assets, allowing only spot Bitcoin ETFs. The recent positive stance is already exciting the crypto industry, with more issuers sending their applications to the SEC for approval of ETFs linked to different cryptocurrencies.