Canary Capital’s HBAR ETF: Nasdaq Filing Signals Approval Push

• Nasdaq has filed 19b-4 application documents for Canary Capital’s HBAR ETF
• Canary Capital filed an amended Form S-1
• HBAR and Litecoin now have improved prospects for ETF approval

Canary Capital, a digital asset investment firm, filed the 19b-4 for their Hedera (HBAR) Exchange-Traded Fund (ETF).

They have recently advanced their efforts to launch an HBAR ETF by filing an amended Form S-1 with the US Securities and Exchange Commission (SEC). This amendment usually comes after feedback from the SEC, showing progress in the regulatory review process.

The next step is the filing of Form 19b-4 by the exchange planning to list the ETF. This form officially proposes the rule change needed for the ETF’s approval and listing.

Nasdaq Submits Form 19b-4 for HBAR ETF

As such, today, Nasdaq has officially submitted 19b-4 application documentation in support of Canary Capital’s HBAR ETF.

This development mirrors Canary’s previous actions with their Litecoin (LTC) ETF, which also saw an amended S-1 filing following SEC comments. The active back-and-forth with the SEC suggests a thought-out plan to meet regulatory expectations and increase the likelihood of approval.

Crypto-related ETF applications have gained notable traction, especially after the SEC leadership change under the current administration. 

Some analysts, including Bloomberg’s Eric Balchunas, have noted that assets like HBAR and Litecoin now have improved prospects for ETF approval, positioning them favorably among the current slate of altcoin ETF filings.

Form S-1 and Form 19b-4: Key ETF Documents Explained

Form S-1 is a registration statement that companies file with the SEC when they want to offer new securities (stocks, ETFs, and so on) to the public. 

The form covers financial statements, business operations, risk factors for investors, how they plan to use funds raised from the offering, and management and executive compensation details.

Form S-1: The Fund’s Blueprint

For crypto ETFs, Form S-1 is filed by the asset management company, and it must be approved by the SEC before the ETF can launch.

On the other hand, Form 19b-4 is what’s filed by the exchange (like Nasdaq, NYSE, and Cboe) when they want to list and trade a new security, like a crypto ETF.

If an exchange wants to list a new ETF, it must request SEC approval for a rule change to allow the ETF to be listed. The SEC then reviews and decides whether to approve or deny the request. Public comment periods may also be involved.

S-1 vs. 19b-4: Fund vs. Listing

Basically, Form S-1 is about the fund itself, while Form 19b-4 is about listing the ETF on an exchange.

In the case of Canary Capital’s HBAR ETF, the amended S-1 suggests SEC engagement, and the 19b-4 filing signals progress toward potential approval.