New ETF Developments Signal Expanding Crypto Investment Opportunities

By: Eva Baxter

Canary Capital has recently taken notable steps in the cryptocurrency market by submitting plans to the US Securities and Exchange Commission (SEC) to introduce a new product, the Canary American-Made Crypto ETF. According to the filing, dated August 25, this ETF will focus on digital assets with significant ties to the United States. The fund will invest in cryptocurrencies that are primarily developed, minted, or mined domestically, and whose networks base the majority of their operations within the U.S. The ETF is strategically designed to follow the Made-in-America Blockchain Index, which aggregates and catalogs these qualifying digital assets.

The fund's aim is to mirror the index's performance while also generating additional income through methods such as staking and transaction verification. While the specific coins to be included in the fund have not been detailed in the filing, analysis from independent sources like CoinGecko have indicated that U.S.-origin digital assets are estimated to represent over $520 billion in market value. Projects often recognized within this category encompass major cryptocurrencies like XRP, Solana, Cardano, Chainlink, Stellar, Avalanche, Hedera, and Sui.

This move from Canary Capital is unfolding amid a surge in crypto fund applications. In a related development, Grayscale Investments has filed a registration with the SEC to transform its current Avalanche Fund into a publicly traded trust, to be known as the Grayscale Avalanche Trust ETF. If this filing is approved, the fund is set to be listed on Nasdaq, offering investors exposure to the Avalanche (AVAX) token without the complexities of direct ownership. Coinbase will function as the custodian and prime broker for this product, with plans for AVAX holdings to be used for staking, further generating yield for investors.

The efforts from Canary Capital and Grayscale highlight an expanding interest in U.S.-focused digital asset funds, alongside a diverse range of crypto investment products awaiting SEC approval, such as those focused on Solana and XRP. Eric Balchunas, an ETF analyst at Bloomberg, notes this growing interest illustrates fund managers' creative strategies to expose clients to the evolving cryptocurrency industry. As approval timelines approach, these new offerings suggest an exciting expansion of investment opportunities within the crypto market.