In a significant development for the cryptocurrency sector, the Nasdaq Stock Exchange has filed a 19b-4 application with the U.S. Securities and Exchange Commission (SEC) aimed at listing Grayscale’s Hedera (HBAR) exchange-traded fund (ETF). This critical step marks the second phase in the two-part approval process essential for cryptocurrency ETFs. Should the SEC endorse the application, it will be published in the Federal Register, kicking off the regulatory assessment period.
What Steps Are Involved in Hedera ETF Approval?
The Nasdaq’s filing for Grayscale closely follows a similar submission made by Canary Capital for a spot Hedera ETF. Bloomberg’s Senior ETF expert, Eric Balchunas, highlighted that Hedera and Litecoin (LTC) have emerged as the altcoins most likely to gain SEC endorsement due to their recent advancements in the approval pipeline.
Why Is There a Spike in Altcoin ETF Applications?
The U.S. has recently seen a wave of altcoin ETF applications. Anticipation of a more crypto-friendly environment, especially with the potential re-election of Donald Trump, has spurred a flurry of new filings. Aside from Bitcoin (BTC) and Ethereum (ETH), spot ETFs have also been proposed for various altcoins including Solana (SOL), XRP, and Dogecoin (DOGE).
- Hedera utilizes a decentralized public blockchain with a Hashgraph consensus algorithm.
- A council comprising major corporations like Google and IBM governs Hedera.
- The SEC’s decision on ETF applications is being closely watched by market participants.
Earlier today, the New York Stock Exchange (NYSE) submitted a 19b-4 form for Bitwise’s Dogecoin ETF to the SEC, with predictions suggesting a 75% chance of approval. As the regulatory landscape begins to clarify, the cryptocurrency community is keenly awaiting updates on new altcoin ETFs and which might ultimately be sanctioned by the SEC.
