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HBAR ETF Gets Green Light, But Convincing Altcoin Doubters Remains Challenging

HBAR ETF Gets Green Light, But Convincing Altcoin Doubters Remains Challenging

Bitget-RWA2025/10/29 23:24
By:Bitget-RWA

- Hedera's HBAR token dropped 6% post-ETF approval, contrasting with Solana's $56M debut volume. - The $8M HBAR ETF launch highlights altcoin market skepticism despite regulatory progress and institutional backing. - Technical indicators like death cross and declining on-chain metrics signal bearish momentum for HBAR. - Analysts note ETFs provide regulated institutional access, though broader crypto volatility and SEC delays dampen immediate adoption. - Hedera's enterprise partnerships and USDC growth on i

Hashgraph's own cryptocurrency dropped by 6% within a day on October 28, 2025, even though the first U.S. spot exchange-traded fund (ETF) for HBAR was introduced—a milestone highlighted in the . The Canary HBAR ETF, which began trading on Nasdaq, saw limited initial interest, with only $8 million in trading volume on its first day. This was a sharp difference from the $56 million seen by the ETF during the same period, according to . The subdued market reaction reflects persistent doubts in the altcoin sector, even as regulatory progress like the SEC's approval of the HBAR ETF points to increasing institutional involvement, as reported by Yahoo.

The ETF's debut was a significant event for Hedera, which boasts a governing council featuring Fortune 500 companies such as IBM and Boeing, as detailed in the . Gregg Bell, Hedera’s chief business officer, described the ETF’s approval as a “watershed moment,” highlighting the network’s focus on enterprise tokenization and sustainability, according to Yahoo. However, HBAR’s market performance painted a different picture. Technical signals, including a death cross and weakening on-chain data, pointed to a bearish trend. The token’s value fell from $0.2096 to $0.191, wiping out gains made before the ETF announcement, as noted in a .

HBAR ETF Gets Green Light, But Convincing Altcoin Doubters Remains Challenging image 0

Market experts remain cautiously hopeful, according to a . Bloomberg’s Eric Balchunas pointed out that although HBAR’s ETF launch lagged behind Solana’s, it still offers a regulated entry point for institutional investors—something that could encourage long-term growth, as TradingView reported. On the other hand, some critics highlight broader market challenges. The ETF’s quiet rollout happened alongside a general downturn in altcoins, with Litecoin’s ETF seeing just $1 million in trades, as the Canary ETF report indicated. “Investors are adopting a wait-and-see stance,” one strategist explained, referencing continued volatility due to SEC regulatory delays and wider economic uncertainty, as mentioned in the Canary article.

Nonetheless, Hedera’s core strengths remain attractive. Its hashgraph consensus technology and alliances with leading corporations have made it a prominent player in enterprise blockchain. Furthermore, the rapid uptake of USDC on Hedera—exceeding $172 million in circulation—has enhanced liquidity, according to the Bitget explainer. Analysts from RBC Capital and Piper Sandler have increased their price forecasts for HBAR, anticipating a recovery as institutional interest steadies.

Although short-term challenges persist, the approval of the HBAR ETF signals a larger movement: regulated investment in altcoins is gaining momentum. With seven XRP ETF proposals awaiting decisions and more altcoin ETFs expected, early participants in the market could benefit. For now, HBAR’s future remains unclear, as it navigates technical pressures and its strategic role in the changing crypto landscape.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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