Canary Capital, one of the more prolific ETF issuers, is launching a fund focused on U.S.-based crypto projects.
Summary
- Canary Capital filed for an ETF focusing on U.S.-based crypto projects
- The ETF will include tokens such as Uniswap, Solana, and Chainlink
- Earlier, Canary Capital filed for a Trump Coin ETF.
The investment space is becoming more intertwined with politics and culture. On Monday, August 22, Canary Capital filed an S-1 registration statement with the U.S. Securities and Exchange Commission for an “American-Made Crypto ETF.”
The ETF will focus on projects that have significant ties to the U.S. market. This includes those that are developed, mined, or operated primarily in the U.S. This includes projects such as Uniswap (UNI), Chainlink (LINK), Solana (SOL), and Injective (INJ).
For eligible proof-of-stake tokens, the ETF will participate in staking to boost its returns. These will either be distributed to shareholders or reinvested. What is more, the fund will only hold underlying tokens and not derivatives or futures.
The filing also makes it clear that the fund is high-risk. This is because altcoins on the index have lower liquidity than major crypto assets. What is more, there is still some underlying regulatory uncertainty when it comes to altcoins in the U.S. Moreover, a sole focus on U.S. ETFs reduces diversification.
Canary Capital makes a case for American altcoins
In its filing, Canary Capital argues that U.S.-based altcoins are more likely to succeed than those in other regions. This is likely due to the recent U.S. pro-crypto turn among U.S. regulators and legislators, after Donald Trump’s election victory.
Notably, Canary Capital argues that projects with strong ties to the U.S. will likely be in dialogue with regulators. This makes them less likely to run into legal troubles. What is more, the filing comes shortly after Canary Capital officially registered the “Canary Trump Coin ETF” entity in Delaware on August 13.
