SEC’s Change Improves Chances for HBAR ETF Even With 1.95% Fee

Canary Capital has announced a 1.95% management fee for its planned

spot exchange-traded fund (ETF), positioning it as one of the highest among cryptocurrency-focused ETFs, while its Litecoin ETF will have a 0.95% fee. The proposed HBAR ETF, which follows the price of the native token for the network, aims to let investors access the asset without directly holding or storing the tokens. In an SEC filing dated September 22, 2025, the company updated its S-1 registration to reflect this fee structure, demonstrating its optimism for growing HBAR demand even as the token’s value fell 7% to $0.22 that same day.

The 1.95% fee for the HBAR ETF is notably higher than the 0.95% management fee for Canary’s Litecoin ETF, which is more in line with the standard range for leading crypto ETFs (0.2%–2%). This difference highlights Canary’s targeted approach to altcoin ETFs, especially as regulatory approval odds for these products have climbed to 90%, according to Bloomberg experts. This development is tied to the U.S. Securities and Exchange Commission’s (SEC) shifting perspective on digital assets, which has made it easier to access altcoins through regulated investment vehicles.

Market trends further illustrate HBAR’s current momentum: while the token’s price dipped 7%, its 24-hour trading volume soared 152% to $438 million, pointing to strong investor interest despite turbulence in the crypto sector. Analysts believe this surge in trading activity reflects growing optimism about regulatory progress, with the HBAR ETF potentially opening the door for mainstream investors who want exposure to Hedera’s blockchain without the complexities of wallet management or token storage.

The HBAR ETF’s setup is consistent with a broader move toward institutional-grade crypto investment products. Hedera—a blockchain focused on business use cases—has emerged as a significant player in the decentralized technology space. Canary’s strategy reflects increasing institutional demand for alternative cryptocurrencies, particularly as regulatory guidelines become clearer. Still, the 1.95% management fee raises concerns about competitiveness, especially for lower-priced assets like HBAR, where fees can make up a large share of the overall investment.

Regulatory changes remain a key factor. The SEC’s updated regulatory approach has accelerated interest in altcoin ETFs, with HBAR,

, and among the most prominent prospects. If greenlit, the HBAR ETF would join a young but growing group of products making altcoin investing more accessible, allowing investors to diversify their crypto portfolios without the risks tied to direct token ownership.