HBAR Faces Strong Bearish Sentiments

HBAR has dipped by 9.18% within 24 hours amidst strong bearish sentiments.

Nasdaq Files 19b-4 Form with SEC

The Nasdaq Stock Market LLC has filed a 19b-4 form with the U.S. Securities Exchange Commission (SEC) to list and trade Grayscale’s Spot Hedera Exchange-traded fund (ETF).

With an increase in institutional demand for crypto assets, exchange-traded funds have gained significant popularity since the launch of Bitcoin (BTC) ETFs last year. Recently, Hedera (HBAR) has garnered substantial support for its upcoming ETF.

A 19b-4 filing is the second phase before SEC acknowledgment, after which it will be published in the federal register, awaiting SEC approval. This filing follows Nasdaq’s earlier submission of another Hedera ETF on behalf of Canary Capital.

This second submission positions Hedera favorably among altcoins, potentially gaining approval due to its network development and ecosystem progress. If approved, the ETF would allow investors to gain exposure to HBAR without directly owning the cryptocurrency.

Implications for HBAR

The approval of Hedera’s ETFs could significantly impact HBAR, especially as its network struggles with declining usage. Active accounts have plummeted by 93% from 621,000 to 39,000 in the past three months, indicating waning network usage and adoption, which are vital for the altcoin’s growth.

The ETF would indirectly boost demand and enhance HBAR’s growth prospects. However, despite the potential good news surrounding the ETF, the market sentiment for HBAR remains bearish, with its price at $0.2272, reflecting a 9.18% decline over the past day.

This decline indicates a lack of confidence among investors, shown by Hedera’s aggregated Open Interest falling from $145 million to $103 million, as traders lock in profits or face liquidations due to market retracement. The current conditions suggest investors perceive the ETF as a long-term investment, needing SEC approval to significantly impact HBAR’s price movements in the near term.

If market conditions persist, HBAR could drop to $0.21; however, should investors see the ETF filing positively and begin accumulating, HBAR might recover to $0.25.