Nasdaq Seeks SEC Nod for HBAR ETF as Crypto Filings Surge

The race to bring more cryptocurrency exchange-traded funds (ETFs) to market continues as Nasdaq seeks to list the Canary HBAR ETF. The exchange filed an application with the US Securities and Exchange Commission (SEC) to offer an ETF supported by Hedera Network’s native token, HBAR. This initiative adds to a growing list of applications from issuers and exchanges planning to introduce altcoin ETFs. The SEC must now review and approve the filing before trading can begin.Crypto ETF Filings Gain MomentumCanary Capital, the asset manager behind the proposed ETF, initially filed for SEC approval in November. The fund aims to provide investors with exposure to HBAR, which powers Hedera’s hashgraph-based distributed ledger. Canary has reportedly sought approval for ETFs tied to other altcoins, including Solana, reflecting the increasing demand for crypto investment products.The Nasdaq filing comes amid a broader push to expand crypto ETFs. Other issuers have applied for ETFs tied to cryptocurrencies like Polkadot and Official Trump (TRUMP). Additionally, asset managers are awaiting regulatory approval for modifications to existing ETFs, such as introducing staking options and in-kind redemptions.The SEC's stance on cryptocurrency has evolved significantly following President Donald Trump’s second term. The shift has already resulted in two crypto index ETFs launching in February. On Feb. 20, Franklin Templeton introduced an ETF holding both Bitcoin and Ether, following Hashdex’s Nasdaq Crypto Index US ETF (NCIQ) debut on Feb. 14. Analysts expect additional approvals in the coming months as the regulatory environment continues to change.Bloomberg Intelligence estimates a 65% chance for an XRP ETF to gain approval in the US, while the odds for Litecoin and Solana ETFs stand at 90% and 70%, respectively. HBAR’s approval likelihood remains uncertain, as Bloomberg has not yet provided an estimate.A Changing Landscape for Crypto InvestmentsThe SEC’s previous approach to cryptocurrency was far more restrictive. Under former President Joe Biden, the regulator launched over 100 lawsuits against crypto firms, citing securities law violations. In 2024, it allowed spot Bitcoin ETFs but rejected proposals for ETFs linked to other digital assets.With Nasdaq’s HBAR ETF filing and a growing number of applications for altcoin ETFs, the SEC faces mounting pressure to further expand the crypto investment landscape. If approvals continue at the current pace, investors could soon have more diversified options for gaining exposure to digital assets through regulated financial markets.