TLDR
- Canary Capital’s HBAR Spot ETF comes with a 1.95% management fee, one of the highest for crypto ETFs.
- HBAR trading volume surged 152% despite a 7% price drop, showing strong investor interest.
- The approval chances for altcoin ETFs like HBAR have risen to 90% due to regulatory changes.
- Canary’s HBAR ETF offers investors exposure to Hedera without direct ownership of HBAR.
Canary Capital has confirmed its proposed 1.95% management fee for the HBAR spot ETF, setting the price among the highest for crypto-based ETFs. This new fee structure was disclosed in the firm’s recent SEC filing, which amended its S-1 registration on September 22, 2025. The announcement comes as Canary pushes forward with plans to give investors direct exposure to Hedera’s HBAR token through a regulated, on-chain exchange-traded fund (ETF).
The proposed fee of 1.95% is considerably higher than the 0.95% fee structure proposed for Canary’s spot Litecoin ETF. In comparison, crypto ETFs tracking major assets like Bitcoin and Ethereum typically range between 0.2% and 2% in management fees. By positioning the HBAR ETF at the upper end of the fee spectrum, Canary is signaling its confidence in the growing demand for HBAR exposure.
HBAR ETF to Provide Exposure Without Token Ownership
The HBAR Spot ETF will provide investors with the opportunity to gain exposure to Hedera’s native HBAR token without the need to directly own or store the asset. This structure is designed to simplify the process for traditional investors who want access to the HBAR market while avoiding the complexities of crypto asset management.
Hedera is recognized for its decentralized applications and enterprise-focused blockchain solutions, positioning it as a key player in the evolving blockchain ecosystem.
Despite the higher fees, the ETF offers a streamlined path for those seeking regulated access to the rapidly-growing Hedera network. Canary Capital’s move to list HBAR comes at a time when altcoins are seeing increased interest from institutional investors, and the firm’s strategy seems aimed at positioning itself as a leader in the altcoin ETF space.
HBAR’s Trading Volume and Market Sentiment
On the same day as the filing, HBAR’s price dropped by 7%, trading at $0.22. Despite this price decline, HBAR saw a remarkable 152% surge in its 24-hour trading volume, which reached $438 million.
This increase in volume suggests strong investor interest, even in the face of a broader market downturn affecting major cryptocurrencies like Bitcoin and Ethereum.
The jump in trading volume indicates that investors are responding positively to the news of the ETF filing, with many speculating that the approval of the HBAR Spot ETF is imminent. The price dip reflects the broader weakness in the market, but the surge in volume provides a strong signal of ongoing support for the token. This is consistent with the growing expectations for altcoin ETFs, which are attracting more attention as regulatory conditions improve.
Approval Odds for Altcoin ETFs Continue to Rise
Regulatory sentiment surrounding altcoin spot ETFs has been shifting in recent months. According to Bloomberg analysts, the probability of approval for altcoin ETFs has now reached 90%, up from earlier concerns regarding regulatory resistance. This improved outlook is largely attributed to changes in the regulatory environment, especially with the U.S. Securities and Exchange Commission’s (SEC) evolving stance on digital assets.
As more altcoin ETFs are being considered for approval, the momentum is building for cryptocurrencies like HBAR, XRP, and Solana. Analysts believe that these products will help democratize access to altcoins, offering traditional investors a way to participate in the crypto market without directly purchasing and storing tokens.
