Canary HBAR Trust
Institutional-Grade Access to Hedera’s Proof-of-Stake Network
The Hedera network is a decentralized, open-source, proof-of-stake public ledger using a leaderless, asynchronous Byzantine Fault Tolerance (aBFT) hashgraph consensus. It supports smart contracts and tokenization via Ethereum Virtual Machine (EVM), powering a decentralized finance ecosystem. The HBAR token is used for transaction fees, securing the network through staking, incentivizing developers, and governance over protocol development.
Secure, Transparent, and Scalable Digital Asset Exposure
Gain direct investment access to Hedera’s decentralized proof-of-stake network with institutional-grade security
Simplified Access to HBAR Without Direct Custody
Invest in the trust structure without the need to manage wallets, keys, or direct digital asset storage
Institutional Infrastructure Backed by Trusted Partners
Access secure HBAR exposure through a professionally administered trust structure with regulated custodians and fund services providers
Performance
Data as of 03/21/25
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal will fluctuate so that an investor’s shares when redeemed may be worth more or less than the original cost. Extraordinary performance is attributable in part due to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Investment Details
Trust Name
Canary HBAR Trust
Fund Registration
Exempt. Regulation D
Private Placement
Sponsor
Canary Capital Group LLC
Taxation
Grantor Trust; no K-1
Strategy
Direct Ownership of HBAR
Contributions
US bank wires and HBAR
Minimum Investment
5,000 USD
Custody
Bitgo Trust Company, Inc
Sponsor Fee
2.50%
Administrator
Ascent Fund Services (USA) LLC
Subscriptions
Daily
Tax & Accounting
Richey, May & Co.
About Canary Capital Group
We offer Institutional crypto asset trading and management via our discretionary long/short hedge fund and single-asset trusts. These services are tailored to meet the needs of institutional or accredited investors looking for exposure to cryptocurrencies and digital assets.
Our investment team is composed of crypto native and traditional finance professionals with over a decade of digital asset trading and management experience. Robust trading and custodial risk management processes are integrated across all of Canary Capital's digital asset products to ensure client assets are executed with the highest standards of safety and efficiency.
About HBAR
Efficient and Scalable Network
Hedera Hashgraph offers a high-speed, low-cost alternative to traditional blockchain networks, processing thousands of transactions per second with minimal energy consumption.
Decentralized Proof-of-Stake Governance
HBAR holders can stake their tokens to contribute to network security and governance, while major organizations like Google, IBM, and Boeing participate in the Hedera Governing Council.
Smart Contracts and Tokenization
Hedera supports Solidity-based smart contracts and native token creation, enabling developers to build decentralized applications and issue digital assets efficiently.
Enterprise Adoption and Use Cases
Hedera is widely used for enterprise applications, including secure transactions, digital identity, supply chain tracking, and tokenized financial instruments.
HBAR as a Utility Token
HBAR serves as the network’s fuel, used to pay for transaction fees, deploy applications, and secure the network through staking.
Disclosures
Canary Capital Group Inc. (“CCG”) is the parent holding company of Canary Capital Group LLC (“Canary”). CCG and Canary are not registered as investment advisers under the Investment Advisers Act of 1940 and none of the investment products (“Products”) sponsored or managed by Canary are registered under the Investment Company Act of 1940.
Carefully consider each Product’s investment objectives, risk factors, fees and expenses before investing. This and other information can be found in each Product’s private placement memorandum, which may be obtained from Canary. Investments in digital assets are speculative investments that involve high degrees of risk, including a partial or total loss of invested funds. Investments in digital assets are not suitable for any investor that cannot afford loss of the entire investment.
Canary intends to attempt to have shares of its Products quoted on a secondary market. However, there is no guarantee that Canary will be successful in having shares quoted on a secondary market. Although the shares of similar products have been approved for trading on a secondary market, investors in the Products should not assume that the shares will ever obtain such an approval due to a variety of factors, including questions regulators such as the SEC, FINRA or other regulatory bodies may have regarding such products. As a result, shareholders of such Products should be prepared to bear the risk of investment in the shares indefinitely.
The shares of each Product are not registered under the Securities Act of 1933, the Securities Exchange Act of 1934 (except for Products that may become SEC reporting companies), the Investment Company Act of 1940, or any state securities laws. The Products are offered in private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act of 1933. As a result, the shares of each Product are restricted and subject to significant limitations on resales and transfers. Potential investors in any Product should carefully consider the long-term nature of an investment in that Product prior to making an investment decision.
Canary’s private placements are only available to Accredited Investors, as defined in Rule 501(a) of Regulation D under the Securities Act of 1933. Most individuals are not Accredited Investors. An individual must earn more than $200,000 a year (or $300,000 per year with a spouse or spousal equivalent), have a net worth over $1 million either alone or together with a spouse or spousal equivalent, excluding their primary residence, or hold in good standing their Series 7, Series 65, or Series 82 professional certifications. Entities must have $5 million in liquid assets or all beneficial owners must be Accredited Investors.
This is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. Canary Products are not suitable for any investor that cannot afford loss of the entire investment. The shares of each Product are intended to reflect the price of the digital asset(s) held by such Product (based on digital asset(s) per share), less such Product’s expenses and other liabilities. Because each Product does not currently operate a redemption program, there can be no assurance that the value of such Product’s shares will approximate the value of the assets held by such Product, less such Product’s expenses and other liabilities.
Digital Asset Risk Disclosures
Smart contracts are a new technology and ongoing development may magnify initial problems, cause volatility on the networks that use smart contracts and reduce interest in them, which could have an adverse impact on the value of Digital Assets that deploy smart contracts.
The value of the Product shares relates directly to the value of the underlying digital asset, the value of which may be highly volatile and subject to fluctuations due to a number of factors. Extreme volatility of trading prices that many digital assets have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of the Product and the shares of each Product could lose all or substantially all of their value.
Digital assets represent a new and rapidly evolving industry. The value of the Product shares depends on the acceptance of the digital assets, the capabilities and development of blockchain technologies and the fundamental investment characteristics of the digital asset. Digital asset networks are developed by a diverse set of contributors and the perception that certain high-profile contributors will no longer contribute to the network could have an adverse effect on the market price of the related digital asset.
Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets.
A substantial direct investment in digital assets may require expensive and sometimes complicated arrangements in connection with the acquisition, security and safekeeping of the digital asset and may involve the payment of substantial acquisition fees from third party facilitators through cash payments of U.S. dollars. Because the value of the shares is correlated with the value of digital asset(s) held by the Product, it is important to understand the investment attributes of, and the market for, the underlying digital asset. Please consult with your financial professional.
The Products rely on third party service providers to perform certain functions essential to the affairs of the Product and the replacement of such service providers could pose a challenge to the safekeeping of the digital asset and to the operations of the Products.
Canary does not store, hold, or maintain custody or control of any Product’s digital assets, but instead has entered into a Custodian Agreement on behalf of each Product with a third party custodian to facilitate the security of each Product’s digital assets. The custodian controls and secures each Product’s digital asset account, a segregated custody account to store private keys, which allow for the transfer of ownership or control of the digital asset, on each Product’s behalf. If the custodian resigns or is removed by Canary or otherwise, without replacement, it could trigger early termination of such Product.
