Nasdaq Eyes Listing Grayscale's Hedera Crypto Trust Shares
Published Date: 3/17/2025
Notice
Summary
Nasdaq wants to start trading shares of the Grayscale Hedera Trust (HBAR), a new kind of investment tied to the Hedera cryptocurrency. This change means investors can buy and sell HBAR shares on Nasdaq soon, making it easier to invest in this digital asset. The proposal is open for public comments before it officially goes live, so keep an eye out!
Analyzed Economic Effects
5 provisions identified: 2 benefits, 2 costs, 1 mixed.
Nasdaq proposes HBAR shares listing
Nasdaq filed a proposed rule change on February 28, 2025 to list and trade shares of the Grayscale Hedera Trust (HBAR) under Nasdaq Rule 5711(d). The SEC published the filing for public comment (notice dated March 11, 2025), which means investors may soon be able to buy and sell HBAR exposure on Nasdaq if the listing is approved.
Shares use cash-only creation and redemption
The filing states Authorized Participants will create and redeem Shares using only cash and will not deliver, receive, or handle HBAR as part of the creation or redemption process. That means the creation/redemption mechanism for the Shares is cash-only rather than involving direct transfers of the underlying HBAR.
Index methodology and valuation discretion
The Trust values HBAR using an Index Price derived from the CoinDesk HBAR reference rate (calculated at 4:00 p.m. New York time) and the Index Provider may change the calculation methodology or Constituent Trading Platforms at its discretion. The filing also describes cascading backup rules (secondary index, principal market price, Sponsor good-faith estimate) the Sponsor may use if the Index Price is unavailable.
Sponsor fee paid in HBAR reduces HBAR per share
The Trust will pay a Sponsor's Fee in HBAR that accrues daily at an annual percentage rate that the filing describes as "to-be-determined." Because fees are paid in HBAR, the number of HBAR represented by each Share will gradually decrease over time to cover expenses and the Sponsor's Fee.
Custody uses cold storage and key-sharding
The Trust's custodian (Coinbase Custody Trust Company, LLC) will generate private keys in secure offline ceremonies, encrypt and split keys into geographic shards, and store them in cold (offline) vaults including locations in the United States. The filing describes these security procedures (faraday cages, quantum random number generators, geographic distribution) as intended to remove single points of failure in protecting the Trust's HBAR.
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