What is the Canary HBAR ETF?
The Canary HBAR ETF is an exchange-traded product designed to provide investors with exposure to the value of HBAR, the native asset of the Hedera Network, through a traditional brokerage account.
The Trust holds HBAR directly. Its investment objective is to seek to provide exposure to the value of the HBAR held by the Trust, less the expenses of the Trust’s operations and other liabilities.¹
What is HBAR?
HBAR is the native cryptocurrency of the Hedera Network, a public distributed ledger built for enterprise-grade decentralized applications.
HBAR serves two purposes on the network: it helps secure the network against attack through Hedera’s distributed consensus process, and it pays for the computing resources that enable the network. The Hedera Network is built on the hashgraph distributed consensus algorithm rather than a traditional blockchain structure.¹
How are staking rewards treated?
If the Trust receives staking rewards, those rewards become assets of the Trust and are expected to be reflected in the fund’s net asset value (NAV), after expenses.
The Trust does not guarantee that staking rewards will be earned or maintained at any particular level.1
Do investors receive staking rewards directly?
No. Shareholders own shares of the ETF, not the underlying HBR.
Any staking rewards earned by the Trust would generally be reflected through the value of the Trust’s assets rather than being distributed directly to shareholders.1
How does the ETF obtain exposure to HBAR?
The Trust holds actual HBAR rather than using futures contracts or derivatives.
The value of the Shares is expected to reflect the value of the Trust’s HBAR holdings, less fees and expenses.¹
How is the Trust’s NAV determined?
The Trust establishes its net asset value (NAV) by referencing the price of HBAR in U.S. dollars as measured by the CoinDesk Hedera USD CCIX 60min NY Rate, calculated by CoinDesk Indices based on a 60-minute time-weighted average price aggregated from executed trade flow across major HBAR trading platforms.¹
Does buying the ETF mean I own HBAR?
No. Investors own shares of the ETF. The Trust owns the underlying HBAR on behalf of shareholders.
How is the Trust’s HBAR stored?
According to the registration statement, the Trust’s HBAR is held by qualified digital asset custodians using institutional custody solutions. BitGo Bank & Trust, N.A. and Archax Ltd. serve as the Trust’s custodians and hold all of the Trust’s HBAR on the Trust’s behalf.¹
Can I transfer my ETF shares to a crypto wallet?
No. ETF shares trade through brokerage accounts and cannot be transferred to blockchain wallets.
Can I redeem ETF shares for HBAR?
No. Retail investors generally buy and sell ETF shares on an exchange.
Shares are not redeemable directly for HBAR by individual investors.
How does the ETF’s price relate to the price of HBAR?
The Trust is designed to track the value of its HBAR holdings, less fees and expenses.
Like other exchange-traded products, market prices may vary slightly from NAV during the trading day.
What are the primary risks?
As described in the registration statement, risks include:
- Changes in the market price of HBAR
- Digital asset market volatility
- Network and distributed ledger risks
- Custody risks
- Regulatory developments
- Risks associated with the Trust’s staking activities, including that shareholders do not benefit from staking rewards
- Operational risks
Investors should review the prospectus carefully before investing. For a more comprehensive list of the Fund’s risks, please view the prospectus. Read the prospectus carefully before investing.¹
¹ https://www.sec.gov/Archives/edgar/data/2039458/000199937126012574/hbr-424b3_061026.htm
Investing Involves Significant Risk. The loss of principal is possible. Canary HBAR ETF (the “Trust”) may not be suitable for all investors. This website does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions.
The Trust’s investment objectives, risks, charges and expenses should be considered before investing. The prospectus contains this and other important information, and it may be obtained at https://canaryetfs.com/HBR/prospectus/. Read it carefully before investing.
The Trust is not a registered commodity pool or an investment company registered under the Investment Company Act of 1940. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Trusts focusing on a single asset generally experience greater volatility. Please ask your financial advisor for more information about these risks. Digital assets, such as HBAR, are a relatively new asset class, and the market for digital assets is subject to rapid changes and uncertainty. Digital assets are largely unregulated and digital asset investments may be more susceptible to fraud and manipulation than more regulated investments.
HBAR is subject to unique and substantial risks, including significant price volatility and lack of liquidity, and theft. The value of an investment in the Trust could decline significantly and without warning, including to zero. HBAR is subject to rapid price swings, including as a result of actions and statements by influencers and the media, changes in the supply of and demand for digital assets, and other factors. There is no assurance that HBAR will maintain its value over the long-term.
Trust Risks
Failure by the Trust’s Custodians to exercise due care in the safekeeping of the Trust’s HBAR could result in a loss to the Trust. Investors cannot be assured that the Custodians will maintain adequate insurance with respect to the HBAR held by the Custodians on behalf of the Trust to cover such losses.
The Trust is new with a limited operating history. The Trust is not actively managed and will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of HBAR. An investment in the Trust is not a direct investment in HBAR. Investors will not have any rights that HBAR holders have and will not have the right to receive any redemption proceeds in HBAR. Shares of the Trust are generally bought and sold at market price (not NAV) and are not individually redeemed from the Trust. Only Authorized Participants may trade directly with the Trust and only in large blocks of Shares called “creation units.” Your brokerage commissions will reduce returns.
The amount of HBAR represented by shares of the Trust will decrease over the life of the Trust due to sales of HBAR necessary to pay the sponsor’s fee and trust expenses. Without increases in the price of HBAR sufficient to compensate for that decrease, the price of the shares will also decline, and investors will lose money on their investment. The liquidation of the Trust may occur at a time when the disposition of the Trust’s HBAR will result in losses to investors.
The Trust’s Marketing Agent is Paralel Distributors LLC which is not affiliated with Canary Capital Group LLC or its affiliates, U.S. Bank Global Fund Services, U.S. Bank National Association, Bitgo Trust Company LLC and Coinbase Custody Trust Company LLC.
