Canary Capital Launches First HBAR Trust in the US, Sparking Hedera ETF Speculations

Digital asset-focused investment firm Canary Capital announced on Tuesday the launch of the first HBAR Trust in the United States.

Investment firm Canary Capital announced on Tuesday the launch of the first HBAR Trust in the United States. This move has sparked discussions over the launch of a potential Hedera Exchange-Traded Fund (ETF).

Details of Canary’s HBAR Trust

The Canary HBAR Trust is a private offering that offers eligible investors safe access to HBAR, the native token powering the Hedera network. Accordingly, eligible institutional accredited investors can now invest funds in HBAR, marking an important milestone for the token.

"The Canary HBAR Trust aims to provide new opportunities for US institutional investors looking to capitalize on the rapidly growing demand for crypto-related products," said Steven McClurg, Canary Capital’s CEO.

In addition to the Trust, Canary also offers hedge fund alternatives, such as crypto and fixed-income barbell approaches tailored to institutional clients.

Crypto has seen increased demand from traditional institutions since the US spot Bitcoin and Ethereum ETFs launched. Thus, Canary Capital might be attempting to take a slice of the market through the first US HBAR Trust launch.

The launch of the Trust strengthens Hedera’s position as a leading enterprise-grade, Distributed Ledger Technology (DLT) that continues to see real growth potential. As investors seek new ways to access cryptocurrency, the Trust also potentially paves the way for other HBAR-focused investment vehicles like ETFs.

It is worth noting that Steven McClurg is a co-founder at Valkyrie Funds, which is best known for its Bitcoin ETF launch. McClurg’s position at Valkyrie is likely contributing to the growing speculations of a potential Hedera ETF launch.

This is especially true considering Hedera’s prominence in the asset tokenization sector, NFT issuance, and Web3 application development and deployment. As Hedera continues to gain traction, an ETF might be the next logical step to further institutional adoption.

HBAR, Solana, and XRP are among the cryptocurrencies speculated for a potential ETF launch soon. As CNF noted in a previous post, Grayscale’s recent launch of XRP Trust has sparked discussions over the possibility of an XRP ETF launching in the United States soon.

How Is HBAR Reacting to the News?

The Canary Trust and increased Hedera ETF speculations have not boosted the price of HBAR.

Hedera was among the big gainers in the crypto market at the end of September. As CNF covered earlier, HBAR hit a weekly high of $0.05797 following a 16.5% increase. The cryptocurrency has since shed some of its gains, trading at $0.05455 at the time of this writing.

HBAR, currently the 44th largest digital asset, dropped by 7.4% in 24 hours and 9% in the past week.

The decline, however, follows a general crypto market downturn, which saw Bitcoin dropping to $61,000 from the $65,000 price range. Still, Hedera’s trading volume registered a 57% surge in the past day to $74 million,侧面 investors’ confidence in the token.

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