New Canary Capital ETF bets big on slice of $520 billion ‘American-made’ crypto
Canary Capital has submitted plans to the US Securities and Exchange Commission (SEC) for a new product called the Canary American-Made Crypto ETF.
According to an Aug. 25 filing, the proposed spot fund would limit its holdings to digital assets with strong US ties. That includes cryptocurrencies developed in the country, tokens predominantly minted or mined domestically, and networks with most of their operations based in the United States.
The ETF is designed to follow the Made-in-America Blockchain Index, which aggregates qualifying assets.
According to the filing, the trust aims to mirror the index’s performance while generating additional income by participating in network validation processes, such as staking or transaction verification.
Meanwhile, the filing does not list specific coins, but market data helps illustrate the scope of the fund.
CoinGecko estimates that US-origin assets represent more than $520 billion in market value. Some of the projects often cited in this category include XRP, Solana, Cardano, Chainlink, Stellar, Avalanche, Hedera, and Sui.
Commenting on the trend, Bloomberg ETF analyst Eric Balchunas said the filing illustrates how fund managers explore every possible angle to expose investors to the emerging industry.
He stated:
“As we’ve predicted, get ready for ETFs to try every combination imaginable.”
Avalanche ETF
The move by Canary Capital lands in a busy season for crypto fund applications.
In a parallel development, Grayscale Investments lodged a registration statement with the SEC to convert its existing Avalanche Fund into a publicly traded trust. If approved, the vehicle will be listed on Nasdaq as the Grayscale Avalanche Trust ETF.
The product would expose investors to Avalanche’s AVAX token without requiring direct custody. Coinbase has been named the fund’s custodian and would also act as prime broker for the product.
Proceeds from basket issuances will be used to acquire AVAX, which the trust can hold, convert to US dollars for expenses, or distribute during redemptions. Subject to regulatory approval, the trust may also use its AVAX holdings for staking to generate additional yield.
Grayscale’s Avalanche proposal adds to the growing number of altcoin-focused ETF filings now awaiting SEC review. Industry experts expect the agency to issue decisions on higher-profile applications, including Solana and XRP, before the end of the year.
The post New Canary Capital ETF bets big on slice of $520 billion ‘American-made’ crypto appeared first on CryptoSlate.