Canary Builds Bridge to Crypto ETF Future as SEC Looms

The asset management firm Canary has announced that its XRP and Hedera (HBAR) ETFs have been listed on the Depository Trust & Clearing Corporation (DTCC), positioning the funds ahead of an anticipated decision by the U.S. Securities and Exchange Commission (SEC) on their regulatory status. This move is seen as a strategic step to prepare for potential market demand and regulatory clarity, particularly for cryptocurrencies currently under scrutiny by the SEC.

The DTCC listing is a prerequisite for many asset managers seeking to offer ETFs on major exchanges in the U.S. It facilitates the infrastructure needed for clearing and settlement, which is essential for the successful launch of any ETF product. Canary’s XRP and HBAR ETFs, both targeting exposure to well-known blockchain platforms, are being structured as physically backed digital asset funds, with each ETF holding the underlying crypto assets in custodial arrangements.

Analysts note that the timing of the DTCC listing is significant, given the SEC’s ongoing deliberation over whether XRP and other digital tokens should be classified as securities. A decision on the status of XRP is expected soon, and outcomes could determine whether these ETFs can proceed without regulatory hurdles. Canary has not yet indicated a specific launch date but emphasized that the DTCC listing was a necessary step toward an eventual exchange listing.

The listing follows a broader trend of institutional interest in crypto-related products, despite regulatory uncertainty. Other firms have also been preparing to launch digital asset ETFs, with some reportedly in advanced stages of approval. Canary’s action suggests confidence in the regulatory trajectory and highlights the growing infrastructure support for crypto investments, even as compliance remains a complex and evolving landscape.

While the SEC’s decision is still pending, the DTCC listing allows Canary to demonstrate market readiness and operational compliance with key financial infrastructure providers. This development also underscores the increasing legitimacy of crypto assets within traditional financial markets, as more institutional players seek to bridge the gap between digital and conventional asset classes.