Just In: Grayscale Files 19b-4 For Hedera ETF With US SEC

American asset management firm Grayscale Investments has filed 19b-4 to list and trade Hedera ETF with the United States Securities and Exchange Commission (SEC). Nasdaq Stock Market LLC made the filing on behalf of the firm as the firm pushes to expand its crypto product list.

Grayscale Hedera ETF is Not New

Per the filing, Grayscale plans to list the ETF product to track the underlying price of HBAR, the native currency of the Hedera blockchain. The 19b-4 is a crucial filing in the approval process for an exchange-traded fund (ETF) product. If approved, qualified investors can gain exposure to HBAR without directly holding the asset.

If approved, the Hedera ETF product will trade on the Nasdaq exchange, like other funds from Grayscale investments. Key details tied to the fund, like the chosen custodian, were not disclosed. However, subsequent filings might confirm the custodian as Coinbase Custody, which the firm tapped for its GBTC and ETHE products.

The Grayscale push for Hedera ETF has been spotted as early as January. Over the past few weeks, Canary Capital has pioneered the push for an HBAR ETF with the SEC. This implies that the Grayscale Hedera ETF product will not be the first of its kind.

Grayscale Taking Frontline ETF Approach

Over the past few weeks, Grayscale Investments has kept up with the crypto trust and ETF filings. To take a frontline position in the crypto ETF push, it has filed for the Cardano ETF, Solana ETF, and XRP ETF, amongst others.

Meanwhile, the firm’s confidence in securing approvals hinges on its history with the US SEC. Grayscale won the lawsuit that compelled the markets regulator to revise its decision on Bitcoin ETF applications.

Following this directive for review, the SEC approved spot Bitcoin ETF products for trading in January 2024. Spot Ethereum ETF products followed shortly. As one of the largest issuers of these products, Grayscale has created a ready market to boost its push for more altcoin ETFs.

US SEC and Crypto ETF Growth

Beyond Grayscale, other asset managers are also pushing for crypto ETF approvals with the SEC. To stretch the regulator’s potential flexibility, asset managers like Rex-Osprey and Tuttle Capital have filings for Dogecoin ETF. 

Popular memecoins like TRUMP, MELANIA, and BONK have ETF proposals to track prices.

While Bloomberg has issued approval odds for XRP, Solana, and Litecoin ETFs, the chances of memecoin ETFs remain uncertain. The regulator is generally more open to the crypto market, as shown in the recently closed Kraken lawsuit. Whether this will translate to more crypto ETF approvals remains to be seen.