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- The Canary HBAR ETF aims to provide direct exposure to the value of HBAR, Hedera’s native digital asset.
- The ETF will trade on Nasdaq under the ticker “HBR,” with shares issued in baskets of 10,000.
- The product operates outside the Investment Company Act and Commodity Exchange Act regulations.
According to the filing, the Canary HBAR ETF marks a new step for digital asset investment on traditional exchanges. The Trust’s purpose is to offer investors exposure to the value of HBAR, the token that powers the Hedera network.
The ETF will calculate its value based on the CoinDesk Hedera USD CCIX 60-minute rate, ensuring a transparent and time-weighted price reference in U.S. dollars. Canary Capital Group LLC acts as the sponsor, supported by several institutional partners.
CSC Delaware Trust Company serves as the trustee, U.S. Bancorp Fund Services functions as the transfer agent and administrator, while U.S. Bank handles cash custody. BitGo Trust Company and Coinbase Custody Trust Company will safeguard all HBAR held by the Trust.
Together, these custodians form the backbone of the ETF’s operational framework. The ETF will trade under the symbol “HBR” on Nasdaq once regulatory approvals are complete. It represents an attempt to bridge regulated markets and blockchain assets without direct token management by investors.
Canary HBAR ETF Introduces Basket-Based Share Structure
The Trust will issue and redeem shares in units called “Baskets,” each containing 10,000 shares. Every basket reflects a defined quantity of HBAR, adjusted for expenses and liabilities. Authorized financial participants will handle the creation and redemption process, either in HBAR or equivalent cash.
When investors buy or sell shares on the secondary market, prices may differ from the ETF’s actual net asset value. This variation depends on supply, demand, and market sentiment. As with most exchange-traded products, investors will trade through brokers and pay standard commissions.
The ETF’s design ensures that HBAR is directly held by custodians, offering transparency in asset backing. This setup allows investors to gain exposure to Hedera’s ecosystem through a regulated investment structure.
HBAR Foundation Backs Launch of Canary HBAR ETF
Unlike traditional funds, the Trust does not fall under the Investment Company Act of 1940 or the Commodity Exchange Act. This means investors will not receive protections typical of registered funds or futures markets.
The sponsor is also exempt from fiduciary obligations under the Investment Advisers Act, signaling a straightforward product structure focused solely on asset exposure. The HBAR Foundation will act as the Seed Capital Investor, purchasing 40,000 shares at $25 each before public trading begins.
The proceeds will fund the Trust’s initial HBAR holdings. This early investment underlines the Foundation’s role in promoting broader accessibility to HBAR through mainstream financial channels. The Canary HBAR ETF signals another milestone in connecting blockchain value with institutional-grade investment products.
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