Canary Capital Pushes Forward with Staked Cronos ETF Filing
Canary Capital Group LLC brought it one step nearer to launching a new investment cryptocurrency product. On May 30, the firm submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for its proposed Canary Staked CRO ETF. The exchange-traded fund will give investors access to regulated exposure to Cronos (CRO), the native asset of Crypto.com.
Indirect Investment in CRO for Investors
The Canary Staked CRO ETF will allow investors to gain exposure to CRO without actually owning or holding the digital asset. The fund will seek to replicate the market value of CRO in custody, minus operational expenses. The model provides a simple, regulated route for investors to access CRO without the complexity of wallet administration or token storage.
Growing Yield With On-Chain Staking
In a surprising move, the ETF will stake a portion of its CRO holdings on the Cronos proof-of-stake blockchain. The staking process will receive additional CRO rewards for the fund, potentially increasing shareholder returns. Fund net asset value (NAV) will be determined daily from a benchmark across multiple digital asset exchanges to provide transparent and accurate valuation.
Institutional-Grade Custody and Risk Management
Foris DAX Trust Company, which trades under the name Crypto.com Custody Trust Company, will hold custody of the CRO of the fund. It will employ secure, off-line storage techniques and will enjoy private insurance protection against loss or theft—not FDIC insured. Notably, the ETF will forgo leverage, derivatives, and lending in favor of a low-risk, long-only strategy.
Building on Previous Efforts
This.elling marks a prior partnership between Crypto.com and Canary Capital. Earlier, the firms introduced the Canary CRO Trust, a product offering eligible U.S. investors the facility to invest in CRO in a regulated setting.
Furthermore, Crypto.com partnered with 21Shares to list a regulated CRO ETP already trading on Euronext Paris and Amsterdam under the ticker symbol CRON.
With this new ETF filing, Canary Capital makes its stand on bridging traditional finance and blockchain assets within a regulatory context.
