Digital asset investment firm Canary Funds launches Canary HBAR Trust in the U.S

Collins J. Okoth

Canary Funds has launched an investment vehicle called Canary HBAR Trust in the United States to give institutional investors access to HBAR. The investment vehicle is part of Canary Fund’s objective to pave the way for HBAR exchange-traded funds (ETFs).

The Canary HBAR Trust will facilitate private offerings, exposing investors to HBAR in a secure manner. HBAR is the Hedera network’s native digital asset. The Hedera network actively supports asset tokenization, Web3 deployment and application, and the issuance of NFTs. The Trust Fund will require individual investors to meet certain qualifications before being accepted.

Canary Funds opens HBAR doors to institutional investors

Canary HBAR Trust: Institutional Investors in the US Can Now Acquire HBAR 🏦

We’re excited to announce that @CanaryFunds, the digital asset-focussed investment firm founded by @stevenmcclurg, has launched the first dedicated HBAR investment vehicle in the United States 👇 pic.twitter.com/PHwJ56qoU0

— HBAR Foundation (@HBAR_foundation) October 1, 2024

Canary Funds was developed by Steven McClurg, a former co-founder and CIO of Valkyrie Funds. Valkyrie Funds is an approved exchange-traded fund that issues the Valkyrie Bitcoin ETF listed on the NASDAQ exchange.

According to an announcement from the Hedera Foundation, the Trust looks to capitalize on the institutional capital from large-scale investors in the US who had been previously sidelined. The newly established Trust Fund will now give large-scale investors access to HBAR tokens.

The Hedera Foundation announcement also detailed that increasing HBAR’s accessibility to institutional capital could open more investment vehicles for institutions looking to tap into the digital asset industry. 

The demand for institutional access to cryptocurrencies has risen since the year began when the U.S. Securities and Exchange Commission approved Bitcoin and Ethereum ETFs. 

Bitcoin ETFs have so far witnessed cumulative total net inflows worth $18.86 billion. Blackrock leads the ETF list with cumulative net inflows of $21.50 billion at the time of writing this. Data from Sosovalue shows that the BTC ETFs witnessed $61.30 million in daily total net inflows on September 30th. 

The approved BTC funds cumulatively hold 4.69% of Bitcoin’s market cap in assets under custody. On the other hand, Ethereum ETFs hold 2.27% of the asset’s underlying market cap.

Crypto investment firms show increased interest in offering crypto 

Institutions have showcased interests in major altcoins such as Solana and XRP. These two digital assets sparked a wave of discussions on the future of their respective ETFs. However, Grayscale seems to be ahead of the curve. 

The firm launched the Grayscale XRP Trust on September 12th to offer accredited individual investors and institutions access to Ripple’s XRP. Grayscale already has Bitcoin and Ethereum ETFs and appears to be spearheading investors’ entrance into the digital asset landscape.

Despite the news, Hedera Hashgraph’s HBAR price is down 7% in the last 24 hours and has dipped close to 5% in the last seven days. The digital asset’s trading volume is up 35% in the last 24 hours and sits at $68.2 million at the time of this publication, according to data from CoinmarketCap.

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