Isabella García
Canary Capital has officially submitted an S-1 registration form to the U.S. Securities and Exchange Commission (SEC), aiming to launch what could become America’s first spot CRO exchange-traded fund (ETF) — one that also includes a staking feature.
The ETF would track CRO, the native token of the Cronos blockchain, which is an integral part of the Crypto.com ecosystem. According to the SEC filing, Crypto.com would act as both the custodian and liquidity provider for this new fund.
What sets this ETF apart is its plan to stake a portion of its holdings through third-party staking providers. This approach aims to generate additional yield for investors, making it one of the first U.S.-based crypto ETFs to explore staking in its core structure.
While the ETF will initially handle share creations and redemptions in cash, similar to existing Bitcoin and Ethereum spot ETFs, Canary has indicated it may pursue in-kind redemptions in the future if it receives the necessary regulatory permissions.
Crypto.com Praises a Step Toward Broader U.S. Adoption
Eric Anziani, President and COO of Crypto.com, commented:
“ETFs have significantly expanded crypto access for traditional investors, and we’re thrilled to support this initiative that could allow U.S. investors to gain exposure to CRO in a regulated format.”
Cronos Chain: The Foundation of the ETF
Cronos, built using the Cosmos SDK and fully compatible with Ethereum (EVM), is designed for low-cost, high-speed transactions across DeFi, NFTs, and web3 applications. CRO is used across the network for staking, governance, and transaction fees.
Canary Capital Expands Its Crypto ETF Ambitions
This isn’t Canary’s only venture into crypto ETFs. In recent weeks, the firm has also submitted applications for spot ETFs tied to Pengu, Sui, Hedera, Litecoin, and Tron, many of which also include staking components.
Broader Trend: Traditional Finance Eyes Crypto ETFs
The race to launch crypto ETFs is accelerating, especially under the current pro-crypto stance of the Trump administration. Asset managers like Bitwise, Grayscale, Franklin Templeton, and REX Shares have submitted filings for ETFs tracking XRP, Solana, Dogecoin, Cardano, Avalanche, and other major cryptocurrencies.
Meanwhile, Trump Media has recently partnered with Crypto.com and Yorkville America Digital to develop ETFs focused on U.S.-based digital assets, further signaling a shift in the regulatory climate.
SEC Clarifies Staking Is Not a Securities Transaction
Notably, Canary’s filing came just one day after a significant announcement by the SEC’s Division of Corporation Finance. The agency clarified that staking activities on proof-of-stake networks do not qualify as securities transactions.
“Participants in protocol staking activities are not required to register under the Securities Act,” the SEC said, offering much-needed clarity for crypto projects and service providers in the staking ecosystem.
Hester Peirce, a commissioner at the SEC, praised the announcement:
“Providing security isn’t the same as being a security,” she stated, reinforcing the legality of staking models moving forward.
CRO Price Jumps After ETF News
Following the announcement of the ETF filing, CRO’s price surged by 6%, reaching $0.098 according to PRIME’s Cronos price tracker. This price jump highlights growing investor interest in the asset’s future — especially if ETF approval is granted.
