Crypto ETFs Are Taking Over—Grayscale Hedera ETF Could Be The Next Big Thing

Grayscale Investments has filed a 19b-4 application at the U.S. Securities and Exchange Commission (SEC) to establish a Hedera (HBAR) exchange-traded fund (ETF). Through a submission from Nasdaq, the company continues its rapid expansion into cryptocurrency investment products.

An upcoming exchange-traded fund from Hedera will let investors access their HBAR cryptocurrency through its platform instead of handling possession of the tokens. Institutional interest in digital asset ETFs has continued to increase after the SEC approved spot Bitcoin ETFs early in 2024, which prompted this strategic decision.

The Broader ETF Push and Grayscale’s Dominance

Grayscale continues its mission to dominate the crypto ETF segment by directly pursuing a Hedera ETF as one incident within a broader strategic initiative. The firm continues its strong efforts to file crypto-based ETF applications for Cardano (ADA), Solana (SOL), and XRP.  The crucial win by Grayscale Institution enabled spot Bitcoin ETFs to gain approval in January 2024, which paved the way for additional approvals concerning various crypto assets.

Nasdaq has filed a 19b-4 with the SEC to list the Grayscale Hedera (HBAR) Spot ETF, a step toward offering regulated exposure to $HBAR.

If approved, it would allow investors access without direct custody, aligning with Grayscale’s broader push into crypto ETFs.

The SEC’s review… pic.twitter.com/UtI0eWNtA0

— More Crypto Online (@Morecryptoonl) March 4, 2025

Meanwhile, other investment firms are exploring their business opportunities within the crypto ETF market domain. Canary Capital filed a 19b-4 application for an HBAR ETF as an indication that both competition and institutional demand for cryptocurrency investment products continue to grow. Canary Capital’s cryptocurrency expansion now includes an XRP ETF and a spot Litecoin ETF that is advancing toward approval status from the SEC.

The SEC’s Stance on Crypto ETFs and Market Implications

The Securities and Exchange Commission underwent major changes regarding cryptocurrency exchange-traded funds last year. Growing market demand and legal challenges spurred the regulator to become more open to detecting crypto ETFs, but this regulatory stance has remained consistent for a long time. Market experts at Bloomberg express optimism about the SEC approving ETFs that will track Solana and XRP. The number of ETF applications keeps rising, demonstrating how digital assets actively move into established investment instruments within the financial industry. 

These approved products will boost crypto legitimacy, thus attracting institutional participation and generating enhanced market liquidity for accelerated market expansion. However, challenges remain. The Securities and Exchange Commission remains focused on crypto industry monitoring, which led to legal actions against Kraken and other crypto firms in recent months. The market approval for extra crypto ETFs seems plausible, but regulatory ambiguity combined with market volatility will make their final implementation more challenging.

A Milestone for Crypto Adoption?

Grayscale Hedera ETF provides major progress toward crypto market acceptance by mass audiences. This approval will present institutional investors with a fresh strategy to access HBAR while sustaining the increasing popularity of involved cryptocurrency investment products. 

The market transforms because Grayscale, along with competitors such as Canary Capital, drives new cryptocurrency adoption methods that enable people to use digital assets as part of their diverse investments. Time will reveal whether the SEC plans to embrace this shift in crypto ETF acceptance or not. Still, digital asset regulatory approval certainly stands at the threshold of realization.