Canary Capital, a prominent digital asset management firm, has made significant advancements in its pursuit of launching one of the first exchange-traded funds (ETFs) focused on the Hedera Hashgraph (HBAR) digital token. Recent disclosures show that the company has filed an S-1 amendment with new details regarding its proposed ETFs for both HBAR and Litecoin (LTC).
In this latest filing, Canary Capital officially designated the ticker symbols for its ETFs: HBAR will trade under the symbol HBR, while the Litecoin ETF will be marked as LTCC. Additionally, the management structure for these funds incorporates an annual fee of 0.95% for sponsors, which is considered steep compared to fees associated with Bitcoin’s spot price-tracking ETFs. Eric Balchunas, Bloomberg’s Head ETF analyst, noted that while the fee is high for niche ETF products, it aligns with trends observed in newly introduced ETFs. However, he cautioned that if more issuers enter the market, those fees could become more competitive.
In response to these developments, the native token of Hedera, HBAR, saw a temporary rise of 3.6%, peaking at $0.231 before correcting later. The S-1 amendment places Canary Capital’s HBAR ETF among the frontrunners for approval in late 2025, supported by positive sentiment in the market. Current odds for approval range between 95% to 98%, as indicated by both Bloomberg and market participants on PolyMarket. Nonetheless, the ongoing U.S. government shutdown has cast uncertainty over the approval timeline, causing anxiety about the Securities and Exchange Commission’s (SEC) review process.
The Canary HBAR ETF would mark the first of its kind in the U.S., providing investors with straightforward access to the Hedera token through traditional financial markets. Initially filed in February 2025, the ETF aims to broaden the accessibility of altcoins for institutional and retail investors alike.
Analysts consider the recent S-1 amendments a crucial step ahead of potential approval, despite lingering questions surrounding the ongoing governmental stall. The SEC’s initial deadline for review, originally set for October 2, was missed due to the shutdown, with the next scheduled review anticipated for November 8, 2025. If the ETF gains approval, it could catalyze substantial institutional investment into HBAR, leading to a significant price surge and marking a noteworthy moment in the evolution of cryptocurrency markets beyond Bitcoin and Ethereum.
