The SEC allows for the submission of Hedera Hbar ETFs from Grayscale's Nasdaq

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The US SEC is acknowledging any altered changes to the rules that allow NASDAQ to list and trade shares in Grayscale Hedera Trust.

After granting the application, the regulator has set up a 21-day public comment period for submitted submissions. The regulator then decides whether to approve, disapprove or file a lawsuit.

The latest development follows NASDAQ's Form 19B-4 submission to the SEC earlier this month, seeking approval to provide Grayscale's investment product, which holds HBAR, the native token of the Hedera network.

Trust shares trade on NASDAQ under the Commodity-based Trust Equity Rules. Sponsored by Grayscale Operating and Grayscale Investments, CSC Delaware Trust Company as trustee and Coinbase Custody Trust Company as custodian.

The SEC's acknowledgements do not guarantee Grayscale's proposed approval of the ETF, but show potential changes in regulatory stances towards Crypto Investment Products. This contrasts with previous cases in which SEC unwillingness led to the withdrawal of similar applications.

This proposal follows the approval of the SEC's Spot Bitcoin and Ethereum ETF. NASDAQ said that the oversight sharing agreement with Coinbase derivatives through ISG membership provides adequate investor protection, similar to the arrangements that allow for these previous approvals.

So far, Grayscale and Canary Capital are two asset managers who are planning to launch an HBAR ETF. Last month, NASDAQ filed the 19B-4 form with the SEC of Canary Capital's Spot Hbar ETF.

Grayscale also pursues SEC approval for additional digital asset investment products, including those tracking XRP, Solana, Dogecoin, Litecoin and Cardano.

According to Coingecko data, Hedera's native coin, Hbar, is currently ranked as the 16th largest cryptocurrency by market capitalization.

HBAR is currently down about 17% to about $0.19 over the past seven days.

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