Canary Funds files SEC 424B3 for HBAR spot ETF, marking a first for Hedera investors

Canary Capital has brought Hedera’s HBAR token into the ETF mainstream. The firm filed a Form 424B3 prospectus supplement with the SEC for its spot HBAR ETF, trading under the ticker HBR on Nasdaq.

The filing, submitted around October 27, 2025, preceded the fund’s trading debut on Nasdaq the following day. It makes HBR the first US spot ETF offering direct exposure to HBAR, the native cryptocurrency of the Hedera network.

What the filing actually means

A 424B3 is a prospectus supplement, essentially the final paperwork that tells investors exactly what they’re buying before shares start changing hands. The more important backstory is the S-1/A filing Canary submitted on September 22, 2025, which served as the precursor registration statement. The 424B3 was the last regulatory hurdle before shares could actually trade.

The ETF is structured as a grantor trust that holds 100% HBAR, plus minor cash reserves. That structure means investors own a proportional share of actual HBAR tokens sitting in custody, not derivatives or futures contracts.

Custodial duties are split between BitGo Trust Company and Coinbase Custody. Pricing relies on a benchmark from CoinDesk for valuation of the underlying HBAR holdings.

The sponsor fee is set at 0.95%. For context, that’s higher than most spot Bitcoin ETFs, which have largely settled into a fee war in the 0.20%-0.25% range.

The numbers so far

As of June 2026, the fund’s net assets sit at approximately $52.6 million. The market price per share was around $11.14 as of June 8, 2026. The fund’s CUSIP number is 136945102.

Canary Capital CEO Steven McClurg framed the approval as a significant moment for broadening investor access to digital assets.

Why this matters beyond HBAR

The Hedera network operates a hashgraph-based distributed ledger, which is technically distinct from traditional blockchain architecture. It’s governed by the Hedera Governing Council, a body that has included companies like Google, IBM, and Boeing.

For investors considering the HBR fund, the 0.95% sponsor fee is the most immediate cost to weigh. With $52.6 million in net assets, the fund is still relatively small. Smaller ETFs can trade at wider bid-ask spreads, meaning investors might pay a slight premium when buying and accept a slight discount when selling compared to the fund’s net asset value.

Every dollar flowing into HBR translates to actual HBAR purchases by the trust, creating buying pressure that didn’t previously exist from the traditional finance channel.