Digital asset-focused investment firm, Canary Capital, has filed an S-1 registration document with the U.S. Securities and Exchange Commission (SEC) to launch a spot Cronos (CRO) exchange-traded fund (ETF) with a staking component.
The purpose of the proposal is to allow investors to gain direct exposure to CRO, the native cryptocurrency of the Cronos blockchain. The fund will give investors the opportunity to benefit from the potential upside of the cryptocurrency while also earning staking rewards.
If the SEC approves the proposal, it could potentially be the first staked spot CRO ETF in the United States. The recent move by the asset investment company is an avenue to combine the benefits of ETFs with crypto staking.
Canary Capital Partners Crypto.com to Launch ETF
Cronos is a scalable, EVM-compatible blockchain designed by Crypto.com crypto exchange. The blockchain leverages Cosmos SDK to process transactions and enable cross-chain interoperability for DeFi, NFTs, and web3 platforms, with CRO at its core for fees, governance, and staking.
The ETF’s CRO assets accrued through staking by validated infrastructure providers will be held in custody by Foris DAX Trust Company, operating as Crypto.com Custody Trust Company. Staked CRO tokens will be locked for 28 days, during which transfers and withdrawals are not allowed until the stipulated period is over.
The crypto exchange will also act as a liquidity provider for the fund. Concerning the collaboration, the President and COO of Crypto.com, Eric Anziani, said,
“ETFs have been an effective means for broadening investor participation in crypto and further integrating digital and traditional finance capabilities… We are tremendously excited to see this important step being taken in building towards all investors in the U.S. having the opportunity to engage with CRO through an ETF with Canary Capital.”
Not Canary Capital’s First ETF Attempt
Canary Capital has a renowned history of applying for ETFs. In October, the asset management firm filed for a spot Solana ETF with the SEC to track the price of SOL through the Chicago Mercantile Exchange CF Solana index.
Earlier this year, Canary Capital filed for a spot Litecoin (LTC) ETF, and a few months later, the platform submitted a request to the Chicago Board Options Exchange (CBOE) to launch an SUI ETF.
