As a seasoned crypto investor with over a decade of experience navigating the ever-evolving digital asset landscape, I find this latest move by Canary Capital highly intriguing. The prospect of an HBAR ETF listed on a public exchange is indeed a significant step forward for the mainstream adoption of cryptocurrencies.
As a crypto investor, I’m excited to share that Canary Capital has submitted an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for a trading fund focusing on Hedera’s HBAR token. This move signifies a potential new investment opportunity for those interested in the HBAR token, as it could be traded like a traditional stock through an exchange-traded fund.
If given the green light, this would mark the debut of an ETF that focuses on HBAR (HBAR), thereby enabling investors to experience the worth of HBAR, the indigenous token of the Hedera network, as stated in the submission.
In simpler terms, an S-1 registration refers to a document that a company submits to the Securities and Exchange Commission (SEC) when it intends to sell shares publicly or launch investment products like an Exchange Traded Fund (ETF).
In relation to Canary’s proposal, it signifies that they aim to make their HBAR fund available for trading on a publicly accessible market. This move provides a sanctioned avenue for investors to connect with HBAR’s worth, eliminating the need for them to acquire or keep the cryptocurrency directly.
The ETF will follow the value of HBAR by owning the actual token instead of using options or future agreements.
Canary Capital and HBAR
The essential token of the Hedera network, known as HBAR, is used to run decentralized applications and smooth out worldwide transactions within its system.
On the Hedera platform, a unique consensus mechanism called Hashgraph is employed, overseen by notable businesses and institutions for maintaining transparency and security. HBAR plays multiple roles in the Hedera system, including handling transactions and managing the network itself.
For handling the management of the fund, Canary Capital employs an ETF structure with “Authorized Dealers” who are responsible for creating and retiring shares. This method is frequently found in investment funds that focus on cryptocurrencies.
According to the records, HBAR assets will be kept safe in custodial accounts, where some of them will be stored offline (cold storage) in multiple, secure facilities located in different regions.
This year, I’ve had the opportunity to be part of the launch of the initial U.S.-based HBAR Trust by Canary. This trust opened up access for institutional investors like myself to invest in Hedera’s native cryptocurrency. As an accredited investor seeking advanced crypto investment opportunities, this was a perfect fit for my portfolio.
This filing comes as Canary Capital pursues similar ETFs focused on other cryptocurrencies, such as Litecoin.
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2024-11-12 21:54