Canary Capital has made a significant move in the exchange-traded fund (ETF) landscape by launching a spot HBAR ETF, which is now accessible to investors on Nasdaq under the ticker HBR. The firm submitted a Form 424B3 prospectus supplement to the Securities and Exchange Commission (SEC) around October 27, 2025, and the ETF began trading the very next day.
This filing indicates the conclusion of the necessary regulatory steps, giving investors clear insights into what they are purchasing before the shares began trading. The earlier September 22, 2025, filing for the S-1/A registration statement paved the way for this launch, underscoring its importance as the precursor to regulatory approval.
The HBR ETF operates as a grantor trust, exclusively holding HBAR tokens, the native cryptocurrency of the Hedera network, along with minimal cash reserves. This structure allows investors to claim a proportional share of the actual HBAR tokens held in custody, providing direct exposure rather than engaging with derivatives or futures contracts.
Custodial responsibilities for the ETF are divided between BitGo Trust Company and Coinbase Custody, ensuring secure management of the assets. Pricing for the fund is determined based on a benchmark valuation from CoinDesk for the underlying HBAR assets, and the sponsor fee is established at 0.95%. This fee is notably higher than that of many spot Bitcoin ETFs, which have recently entered a competitive fee environment, averaging around 0.20% to 0.25%.
As of June 2026, the fund reported net assets nearing $52.6 million, with the market price per share resting at approximately $11.14. Each fund’s unique identifier, or CUSIP number, is 136945102.
Canary Capital’s CEO, Steven McClurg, emphasized the approval of the HBR ETF as a pivotal development in broadening access to digital assets, opening up new avenues for investors.
The relevance of this launch extends beyond just HBAR, as the Hedera network itself utilizes a hashgraph-based distributed ledger, differing fundamentally from traditional blockchain systems. Its governance structure involves the Hedera Governing Council, which includes prominent companies such as Google, IBM, and Boeing.
For potential investors in the HBR fund, the sponsor fee of 0.95% is a primary cost consideration. While the fund’s net assets stand at $52.6 million, this relative size may lead to wider bid-ask spreads in trading, potentially resulting in slight premiums for purchases and discounts for sales compared to the fund’s net asset value.
Importantly, each dollar invested in HBR translates directly into purchases of HBAR by the trust, exerting buying pressure that was not previously accessible through traditional finance channels. This development could signal a broader shift in how digital assets are integrated into mainstream investment portfolios.
