Canary Capital Files for American-Made Crypto ETF Targeting US-Based Digital Assets

• Canary Capital filed for an American-Made Crypto ETF that will only hold cryptocurrencies with strong U.S. ties and operations.

• The fund will likely include major coins like XRP, Solana, and Cardano, and it may generate extra returns through staking rewards.

• This represents Canary’s latest crypto ETF filing as the company continues expanding its digital asset investment products.

Asset management firm Canary Capital has submitted a new filing to the U.S. Securities and Exchange Commission for an “American-Made Crypto ETF.” The proposed exchange-traded fund will focus exclusively on cryptocurrency assets with strong connections to the United States.

The SEC filing reveals that Canary Capital has submitted an S-1 registration statement for this specialized crypto fund. The ETF will trade on the Cboe BZX Exchange once approved. Industry observers expect the exchange to file the necessary 19b-4 form to list and trade shares of the fund in the coming weeks.

Fund Structure and Investment Strategy

The American-Made Crypto ETF will track the Made-in-America Blockchain Index. This index applies strict criteria for asset inclusion. Eligible cryptocurrencies must originate in the United States. Assets where the majority of supply gets minted through native validation mechanisms within U.S. borders also qualify. The fund will additionally consider coins where protocol operations primarily occur in the United States.

Canary Capital plans to generate additional returns through staking rewards. The fund will validate transactions on networks corresponding to its portfolio holdings. This approach mirrors strategies used by other institutional crypto investment products.

CSC Delaware Trust Company will serve as the fund’s trustee. The asset manager has not yet disclosed details about the custody arrangements for the digital assets.

Potential Holdings and Market Impact

Several major cryptocurrencies appear to meet Canary’s investment criteria. XRP, Solana, and Cardano all have substantial ties to U.S. operations and development. These assets could form the core holdings of the American-Made Crypto ETF.

The inclusion of XRP would create Canary’s second investment product, providing exposure to digital assets. The firm previously filed for a dedicated XRP ETF, though the SEC delayed its decision until October.

Bitcoin presents an interesting case for potential inclusion. While the cryptocurrency’s anonymous creator makes its origin unclear, the majority of Bitcoin mining operations currently occur in the United States. This factor could qualify Bitcoin for the fund despite questions about its initial development location.

This filing represents another addition to Canary Capital’s growing list of cryptocurrency investment products. The asset manager currently has pending applications for ETFs focused on XRP, Litecoin, Hedera, PENGU, and Injective Protocol.

Bloomberg analyst Eric Balchunas noted the filing reflects the success of existing crypto ETFs. He expects more specialized crypto investment products to emerge as the market continues expanding. The analyst suggested that major cryptocurrencies by market capitalization with U.S. connections will likely dominate the fund’s holdings.