- Grayscale’s Hedera ETF proposal aims to provide investors with indirect HBAR exposure, pending SEC approval after a 21-day comment period.
- Key financial institutions like BNY Mellon and Coinbase are ensuring Grayscale’s Hedera ETF meets regulatory standards, boosting market confidence.
On March 11, the U.S. Securities and Exchange Commission (SEC) confirmed Grayscale’s submission of a proposal to list a Hedera (HBAR) exchange-traded fund (ETF) on the Nasdaq stock exchange. This comes as a major step forward for the Grayscale Hedera Trust, a proposal that could introduce a new way for investors to gain exposure to HBAR without directly holding the cryptocurrency.
💥BREAKING:
SEC ACKNOWLEDGES FILING FOR GRAYSCALE’S HBAR HEDERA HASHGRAPH ETF
HUGE FOR $HBAR pic.twitter.com/5Q2NO9EUfQ
— DustyBC Crypto (@TheDustyBC) March 11, 2025
The SEC’s recognition sets the stage for a 21-day comment period, during which the public can weigh in on the proposed ETF before the regulator decides. However, the SEC’s confirmation of Grayscale’s ETF filing does not imply an automatic proposal approval.
This process is a standard procedure for the SEC in reviewing ETF submissions. After this period, the SEC will either approve, deny, or request further proceedings before deciding on the proposed Hedera ETF.
Grayscale’s ETF proposal seeks to list and trade shares of the Grayscale Hedera Trust, which would track the price of Hedera’s token, HBAR. If approved, the shares would trade under commodity-based trust share rules. The filing, submitted by Nasdaq, points out the firm’s commitment to meeting regulatory standards for cryptocurrency-backed financial products.
Key Players in Hedera ETF Management
Adding to this sentiment, several financial institutions are involved in managing and overseeing Grayscale’s Hedera ETF proposal. BNY Mellon Asset Servicing has been selected as the trust’s administrator and transfer agent, while Coinbase Custody Trust Company is set to act as the custodian.
Additionally, CSC Delaware Trust Company will serve as the trustee. These players’ involvement in the ETF’s management is seen as a main factor in ensuring the fund’s security and compliance with regulatory requirements.
Nasdaq’s filing includes a surveillance-sharing agreement with Coinbase Derivatives, which Nasdaq believes is needed to ensure investor protection and market integrity. This agreement is because it has played a role in the approval of other crypto ETFs, including those based on Bitcoin and Ethereum.
However, the SEC has expressed concerns regarding the risks of market manipulation in crypto-based ETFs, but Nasdaq’s agreement is viewed as a way to address such concerns.
Challenges and Implications for the Future
Despite the progress, as reported by ETHNNews, the approach to approval for the Hedera ETF is not guaranteed. Due to market manipulation and regulatory compliance concerns, the SEC has long been cautious about approving cryptocurrency-backed ETFs. In particular, the SEC has clarified the importance of strong tracking mechanisms and secure custody solutions to protect investors.
As Grayscale’s ETF submission unfolds, Hedera’s native token, HBAR, has seen impressive market activity. During the time of writing, HBAR traded at $0.1994, recording an increase of 2.44% over the past 24 hours.
The cryptocurrency’s market capitalization has risen to $8.42 billion, with a trading volume of $615.51 million, which is a 9.99% increase.