Canary Funds Files to Launch Debut HBAR ETF in US
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Johny Smith
2024/12/11
3 mins read
Canary Funds has filed an application with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) focused on the HBAR cryptocurrency, native to the Hedera network. The latter is known for its distributed ledger technology for enterprise use. It supports asset tokenization, Web3 adoption, and NFT issuance. The appearance of HBAR ETF on the market could be an important step for legalization and attraction of institutional capital.
The purpose of the Canary HBAR ETF is to provide investors with access to the value of HBAR, less management costs. The fund’s net asset value will be calculated based on the market price of the token in US dollars, which will allow investors to monitor changes in the cryptocurrency rate through the exchange product.
Such ETFs usually attract a larger number of participants, as they allow the purchase of cryptocurrency assets on traditional exchanges. This, in turn, can help improve the liquidity and stability of the HBAR. Institutions and large funds will be able to use the new ETF to diversify their portfolios.
However, investments in this fund will not be regulated under the Investment Company Act of 1940, thereby depriving investors of certain rights and protections. In addition, the fund is not regulated by the Commodity Futures Trading Commission (CFTC) as it is not associated with futures contracts. It makes an investment in HBAR ETFs are riskier than other financial products.
The emergence of the HBAR ETF may also increase interest in the Hedera network itself and its technologies, which are already in demand for enterprise solutions and Web3 projects. Such a fund not only allows HBAR to expand its audience, but also demonstrates the stability and long-term outlook of the network, which can be important to large investors.
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