XRP News Today: Canary Files American-Made Crypto ETF with Staking Mechanism and U.S.-Based Holdings

Canary Capital Group has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for the Canary American-Made Crypto ETF (ticker: MRCA), a new product designed to track a curated index of U.S.-based or U.S.-created cryptocurrencies [1]. The proposed fund will be listed on the Cboe BZX Exchange and will provide direct exposure to digital assets that meet specific geographic and operational criteria, excluding stablecoins, memecoins, and pegged tokens [1]. The fund’s structure is unique in that it incorporates staking mechanisms for proof-of-stake holdings, with rewards added to the ETF’s net asset value [1].

To qualify for inclusion, assets must be eligible for custody by a regulated U.S. trust or bank, maintain sufficient liquidity, and be tradable on multiple established platforms. The oversight committee will control the index, ensuring compliance with these standards. The index will be rebalanced quarterly and will exclude certain speculative tokens [1]. Projects with U.S. origins that are likely candidates for inclusion include XRP, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Stellar (XLM) [1].

The ETF’s structure includes cold storage for most assets and will be managed by a trust company chartered in South Dakota [1]. This filing follows other crypto ETF applications by Canary, including those tied to Solana, XRP, SUI, and TRX, all of which remain under SEC review [1]. The firm has also registered the name “Trump Coin ETF,” suggesting an interest in creating a product around the U.S. President’s memecoin [1].

The filing arrives amid a broader shift in U.S. crypto policy, including the launch of “Project Crypto” by former SEC Commissioner Paul Atkins, aimed at modernizing the SEC’s approach to digital assets [1]. On August 5, the SEC issued a staff statement clarifying that certain staking arrangements are not subject to securities laws, potentially paving the way for staking-based ETFs like Canary’s [1]. However, the agency has continued to delay decisions on several crypto ETF applications. For example, decisions on NYSE Arca’s Truth Social Bitcoin and Ethereum ETF have been postponed to October 8, while 21Shares and Bitwise’s Solana ETFs are delayed to October 16 [1].

The SEC has also extended its review of Cboe BZX Exchange’s proposal to list the WisdomTree XRP Fund as a commodity-based trust ETF to October 24, 2025 [1]. Similarly, it has pushed back its decision on the Canary PENGU ETF to October 12, 2025 [1]. These delays highlight the SEC’s cautious approach, despite the agency’s recent softening stance on crypto regulation [1].

Eric Balchunas, a Bloomberg analyst, noted that the structure of Canary’s American-Made ETF could set a precedent for a new wave of crypto products as the ETF category gains traction [1]. He suggested that firms are increasingly experimenting with tailored offerings to differentiate themselves in a competitive market. However, he also pointed out the uncertainty surrounding the selection of specific tokens for inclusion, with large-cap U.S.-based coins likely to be favored [1].

Canary Capital’s diverse portfolio of pending ETF applications—ranging from XRP and Litecoin to PENGU and Injective—indicates a strategic effort to cover a broad spectrum of investor demand [1]. The firm’s focus on U.S.-centered crypto products aligns with the broader institutional push to bring more structured and regulated crypto investment vehicles to market [1].

Source:

[1] Canary Files 'American-Made Crypto ETF,' Could Hold XRP, Solana, Cardano (https://coingape.com/canary-files-american-made-crypto-etf-could-hold-xrp-sol-and-ada/)