Hedera (HBAR) Joins the Spot ETF Race: Will the SEC Give the Green Light?

Another day, another altcoin ETF application—this time, it’s Hedera (HBAR) stepping up to the plate. With both the S-1 and 19b-4 forms now in front of the U.S. Securities and Exchange Commission (SEC), a spot HBAR ETF could be closer than we think. And here’s the kicker: since HBAR isn’t classified as a security, this process might just move faster than expected.

Canary Capital Pushes for an HBAR ETF

Canary Capital isn’t wasting any time. Nasdaq just filed the 19b-4 form seeking SEC approval for an HBAR ETF, signaling that Canary is serious about making this happen.

This isn’t their first move either. Back in November 2024, Canary Capital initially filed its S-1 form for a spot HBAR ETF. The fact that they’ve now submitted an amended version suggests the SEC has already provided feedback, and Canary is refining its approach.

Let’s not forget, Canary made waves in October 2024 by launching the first-ever HBAR Trust in the U.S.—a major step in bringing institutional investment into Hedera’s ecosystem.

Is Hedera the Next Big ETF Play?

While HBAR may not have the same mainstream recognition as Bitcoin or Ethereum, it’s emerging as a strong ETF contender—perhaps even on par with Litecoin (LTC).

In December 2024, Bloomberg’s senior ETF analyst, Eric Balchunas, predicted a flood of altcoin ETF applications in 2025. He specifically called out HBAR as a frontrunner, thanks to the fact that it doesn’t carry the regulatory baggage of being classified as a security.

There’s already some precedent. The market has seen HBAR-based exchange-traded products (ETPs), such as Canary’s HBAR Trust. Plus, in mid-2024, Valour Digital Securities Group and Hashgraph launched the first Hedera HBAR ETP on Germany’s Börse Frankfurt Exchange. That product has since landed a second listing as a physically-backed ETP on Euronext Amsterdam.

What Needs to Happen Before an HBAR ETF Launches?

Typically, for an asset to gain spot ETF approval, it needs to have been traded as a futures-based product for at least 18 to 24 months on U.S. stock exchanges. That’s where HBAR faces a hurdle—right now, aside from Canary’s HBAR Trust, it has zero futures exposure in the States.

However, the two existing HBAR ETPs in Europe add credibility to its case. Even though these funds are relatively new and the SEC has become more crypto-friendly, the agency still demands rigorous compliance.

At this point, HBAR joins the growing list of altcoins—XRP, SOL, LTC, and even DOGE—vying for a coveted spot ETF status. But here’s the real deal: getting approval isn’t just about fundamentals or other altcoin ETF launches. Canary Capital and other HBAR investment products need to build traction and prove their legitimacy to the SEC.

That said, the fact that HBAR isn’t deemed a security could accelerate the approval process. If there’s one thing we know, it’s that regulatory clarity often determines the speed of progress in the ETF world.

HBAR’s Market Reaction: A Sign of Growing Interest?

The market took notice. Following the news, HBAR’s price surged from $0.209 to a 24-hour high of $0.225, pushing its market cap to $9.44 billion. While it has since cooled slightly, trading at $0.214 with a market cap of $8.97 billion, the momentum is clear.

Countdown to an HBAR Spot ETF Approval

With Canary Capital submitting both an amended S-1 form and a 19b-4 form, the SEC’s 90-day review process is officially underway. If approved, this could be a game-changer for HBAR, giving it a much-needed boost in institutional credibility and investment.

So, will the SEC give HBAR the green light? Stay tuned—because this is one ETF battle worth watching.