SEC Begins Review of Grayscale's Hedera ETF Listing Application

# SEC Initiates Review of Grayscale's Hedera ETF Application for Nasdaq Listing The U.S. Securities and Exchange Commission (SEC) has begun a 21-day public comment period for Grayscale's application to list its Hedera (HBAR) ETF on Nasdaq, according to a report by CoinGape on the 12th. After the comment period, the SEC will decide whether to approve the application or conduct further review. Should the Grayscale HBAR ETF receive approval, it will be traded under Nasdaq’s commodity-based trust shares regulations. This decision could significantly impact investors seeking indirect exposure to HBAR without direct investment. # Key Details of Grayscale's Hedera ETF Application Grayscale’s proposed ETF aims to track the price of Hedera’s native token, HBAR. The application submitted to the SEC for listing on Nasdaq, if approved, will follow the guidelines for commodity-based trust shares. The ETF’s administration involves BNY Mellon as the administration and transfer agent, Coinbase Custody Trust Company as the custodian, and CSC Delaware Trust Company as the trustee. This submission follows the SEC's approval of Bitcoin and Ethereum spot ETFs. Nasdaq underscored sufficient investor protection through its Information Sharing Agreement (ISA) with Coinbase Derivatives, an ISG member, which historically played a pivotal role in prior ETF approvals, emphasizing market integrity. # Public Comment Process and SEC Decision The SEC has initiated a 21-day public comment period following the receipt of the application, allowing market participants and the general public to submit feedback. This is part of the SEC’s standard procedure for ETF application reviews. Post-comment period, the SEC will decide whether to approve, reject, or further scrutinize the application. Receiving the application is a critical step, yet it does not guarantee approval. The SEC has previously expressed concerns about risks associated with cryptocurrency products. However, the recent approval of Bitcoin and Ethereum spot ETFs suggests a potential regulatory shift toward crypto investment products. Besides Grayscale, Canary Capital also submitted a similar application for a Hedera ETF earlier this year. Grayscale is actively expanding its portfolio by seeking approval for ETFs based on various digital assets, including Polkadot (DOT), Ripple (XRP), Dogecoin (DOGE), Solana (SOL), and Cardano (ADA). # Potential Impact of HBAR ETF Approval on Hedera's Price Hedera's recent price activity has been highly volatile. It surged to around $0.25 but later declined to trade within the $0.18 to $0.20 support range. If this support holds, a rebound or price adjustment could occur in the coming weeks. Additionally, the Moving Average Convergence Divergence (MACD) indicator shows a bullish momentum with the blue line above the orange signal line, although the histogram indicates weakening momentum. The Relative Strength Index (RSI) stands at a neutral 46.60, suggesting neither overbought nor oversold conditions. The recent dip to 41.22 indicates slight bearish pressure but not an oversold status.