U.S. Securities and Exchange Commission receives Canary Capital's S-1 filing for Staked Cronos Exchange-Traded Fund (ETF) submission
The United States Securities and Exchange Commission (SEC) received a registration statement on May 30 from Canary Capital Group LLC for a new exchange-traded fund (ETF), the Canary Staked CRO ETF. This ETF aims to offer investors exposure to Cronos (CRO), the native token of the Cronos blockchain, without requiring direct ownership of the asset.
The Canary Staked CRO ETF is designed to track the price of CRO held in custody, less the fund's expenses. Additionally, a portion of its CRO holdings will be staked on the Cronos proof-of-stake blockchain to generate further CRO rewards. The ETF's net asset value will be calculated daily, based on market value gathered from multiple digital asset exchanges.
Swiss fintech provider 21Shares, in tandem with Canary Capital, has also submitted a bid for a SUI spot ETF listing on Nasdaq. The ETF's CRO assets will be held securely by Foris DAX Trust Company dba Crypto.com Custody Trust Company, a firm that ensures offline storage and offers private insurance against theft or loss. Although this custody is not backed by the FDIC, the fund opts not to use leverage, derivatives, or to loan its assets.
Crypto.com has previously partnered with Canary Capital to introduce the Canary CRO Trust, allowing eligible U.S. investors to invest in CRO within a regulated framework. In addition, an earlier collaboration between Crypto.com and 21Shares has resulted in a regulated CRO exchange-traded product (ETP) now available in Europe on Euronext Paris and Amsterdam under the ticker CRON.
While awaiting SEC approval, the Canary Staked CRO ETF seeks to provide investors a straightforward and regulated route to gain exposure to the growing Cronos ecosystem. Further details about the fund's fees and trading symbol remain undisclosed. The announcement has been well-received by the crypto community, contributing to a surge in the value of CRO following the announcement.
The Canary Staked CRO ETF, aiming to provide a regulated route for investors to gain exposure to Cronos, will use technology from the Cronos blockchain and be managed by Canary Capital Group LLC. The ETF will include crypto assets and may offer staking rewards, with its net asset value calculated on multiple digital asset exchanges like Uniswap (DEX). The partnership between 21Shares and Canary Capital has also proposed a SUI spot ETF for listing on Nasdaq, and previous collaborations have resulted in a regulated CRO ETP in Europe.
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