XRP News Today: Canary Files U.S.-Only Crypto ETF Focused on Domestic Tokens and Staking Rewards

Canary Capital has submitted a regulatory filing with the U.S. Securities and Exchange Commission (SEC) for the launch of the Canary American-Made Crypto ETF (MRCA), a fund designed to offer direct exposure to U.S.-developed and U.S.-operated cryptocurrencies. The fund, which tracks the Made-in-America Blockchain Index, aims to provide a transparent and straightforward investment vehicle for those seeking to gain access to domestic digital assets without the complexities of managing digital wallets [1].

According to the filing, the index includes tokens that are created, mined, or primarily operated within the United States. Potential inclusions may consist of cryptocurrencies such as XRP, Solana (SOL), and Dogecoin (DOGE), provided they satisfy custody, liquidity, and trading venue requirements. The fund excludes stablecoins, memecoins, and pegged tokens, focusing instead on a more regulated and operationally U.S.-centric portfolio [1].

The proposed structure of MRCA differs from other crypto ETFs by not relying on futures or derivatives but instead holding actual tokens. Additionally, the fund intends to incorporate staking rewards generated from proof-of-stake tokens, which can either be distributed to shareholders or reinvested back into the fund. This strategy introduces a passive income component, potentially increasing the fund’s overall return [1].

Regulatory scrutiny remains a key hurdle. The SEC has extended its review period for MRCA, setting a new decision deadline for October 2025. This aligns with the broader delay in approvals for other crypto ETF applications. The agency has taken a cautious stance, particularly on products involving staking and tokenized assets. A recent SEC staff statement indicated that certain liquid staking arrangements may not be classified as securities, which could ease regulatory concerns for staking-inclusive ETFs [1].

The fund’s structure reflects a strategic balance between regulatory compliance and innovation. By maintaining custody of tokens in regulated U.S. trusts or banks, the fund aims to address concerns related to asset security and legal clarity. Most tokens will be held in cold storage, while proof-of-stake assets will be staked via third-party custodians, with rewards added to the fund's net asset value [1].

Canary Capital has previously filed for several themed ETFs, including those focused on XRP and Solana. However, MRCA stands out for its unique U.S.-origin criteria and integration of staking rewards. The firm has also filed for a Trump Coin ETF and other token-specific funds, all of which are pending regulatory approval [1].

The development of MRCA highlights the ongoing transformation of the crypto investment landscape. As more investors seek regulated access to digital assets, niche and thematic ETFs are likely to emerge. If approved, MRCA could serve as a model for similar funds, signaling a shift toward more structured and transparent investment vehicles in the U.S. crypto market [1].

Source: [1] Canary Files US-Only Made-in-America Crypto ETF That Could Include XRP as SEC Reviews Applications (https://en.coinotag.com/canary-files-us-only-made-in-america-crypto-etf-that-could-include-xrp-as-sec-reviews-applications/)