Canary Capital Files First Spot CRO ETF in US

Canary Capital Group, a digital asset-focused investment firm, has submitted an S-1 registration form with the U.S. Securities and Exchange Commission for a spot Cronos (CRO) exchange-traded fund (ETF). The proposed fund, named Canary Stake CRO ETF, aims to provide U.S. investors with direct exposure to the price of CRO, the native token of the Cronos network. This filing marks a significant milestone for Canary Capital, as it is the first proposed spot CRO ETF in the U.S. market.

The S-1 registration form, submitted on May 31, lays the legal groundwork for the fund. Canary Capital had previously registered a Delaware Trust entity earlier this month, further solidifying the framework for the ETF. The proposed ETF is designed to offer investors regulated exposure to Cronos, a cryptocurrency that is the 44th-largest by market capitalization. The filing is part of a broader trend of applications for altcoin-based funds, following the success of spot Bitcoin ETFs such as BlackRock’s iShares Bitcoin Trust ETF.

The Canary Stake CRO ETF is notable for its inclusion of on-chain staking yield, which could potentially enhance the returns for investors. This feature sets it apart from other cryptocurrency ETFs and aligns with the growing interest in staking as a means of earning passive income in the crypto space. The ETF's custodian is Crypto.com, a well-known cryptocurrency exchange, which adds a layer of credibility and security to the fund.

The filing of the Canary Stake CRO ETF comes at a time when the U.S. Securities and Exchange Commission has been extending deadlines for the approval or rejection of applications for various cryptocurrency ETFs, including those tracking Solana, XRP, and Dogecoin. This regulatory caution reflects the evolving landscape of cryptocurrency regulation and the need for thorough vetting of new financial products.

The proposed ETF is part of a wave of applications for funds based on popular altcoins, indicating a growing interest in diversifying investment options within the cryptocurrency market. The success of spot Bitcoin ETFs has paved the way for other cryptocurrencies to gain similar regulatory approval, potentially leading to a more robust and diverse range of investment products for U.S. investors.