Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ...

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission (SEC) for an HBAR exchange-traded fund (ETF), which will offer investors exposure to the crypto asset's price.

Canary Capital submitted an S-1 registration statement to the SEC on Tuesday for a Hedera HBAR spot exchange-traded fund (ETF). This is the first time an asset manager has proposed an ETF for HBAR.

The filing states that the fund aims to "provide exposure to the value of the native asset of the Hedera Network."

Canary Capital's S-1 filing also reveals that its HBAR ETF plans to exclusively hold HBAR directly. However, it does not specify a custodian or administrator for the fund.

Notably, Canary Capital recently introduced an HBAR Trust aimed at accredited investors in October. The firm has also previously filed registration statements to launch Litecoin, Solana and XRP ETFs. This initiative expands investment options for institutional investors seeking exposure to HBAR.

HBAR is the native token for Hedera Network — an open-source public ledger utilizing a unique Hashgraph consensus algorithm. The token is used for transaction fees, staking and governance, allowing holders to participate in network decisions.

HBAR has soared over 19% in the past 24 hours, stretching its weekly gains to nearly 50%. The token could experience a further rally if the ETF gets approved.

The likelihood of the SEC approving Canary Capital's HBAR ETF S-1 filing is unknown, considering recent events and rumors surrounding the current administration. 

These include President-elect Donald Trump's campaign promises to fire SEC Chair Gary Gensler on his first day in office. Crypto community members have also debated rumors that Gensler could step down before the end of his administration.

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