SEC Proposes Rule Change for Grayscale Hedera Trust

The U.S. Securities and Exchange Commission (SEC) has acknowledged a proposed rule change that would allow Nasdaq to list and trade shares of the Grayscale Hedera Trust. Following approval, the SEC opened a 21-day public comment period on the application, after which it will decide whether to approve, deny, or initiate proceedings.

The latest development follows Nasdaq’s filing of a Form 19b-4 with the SEC earlier this month, which sought approval to offer a Grayscale investment product that would hold HBAR, the native token of the Hedera Network. Shares of the trust will trade on Nasdaq under the commodity-based trust’s share rules. Grayscale Operating and Grayscale Investments Sponsors will act as sponsors, CSC Delaware Trust Company will act as trustee, and Coinbase Custody Trust Company will act as custodian.

While the SEC’s approval does not guarantee approval of Grayscale’s proposed ETF, it signals a potential shift in the regulator’s stance on crypto investment products. This contrasts with past instances where the SEC’s reluctance has led to similar applications being withdrawn. The proposal follows the SEC’s approval of spot Bitcoin and Ethereum ETFs. Nasdaq said its joint oversight agreement with Coinbase Derivatives through its ISG membership provides sufficient investor protections, similar to the agreements that led to previous approvals.

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