Canary Capital filed an S-1 registration statement with the Securities and Exchange Commission on Friday in a bid to manage what could be the first spot CRO exchange-traded fund in the United States — including a staking component.
The proposed fund seeks to offer direct exposure to the price of CRO, the native cryptocurrency of the Cronos blockchain, which is closely associated with the Crypto.com ecosystem. Crypto.com would serve as the custodian and liquidity provider for the fund, according to the filing.
The Trust intends to stake a portion of its assets through one or more staking providers, potentially generating additional yield for investors. It would process share creations and redemptions in cash rather than in-kind — mirroring the structure used by existing spot Bitcoin and Ethereum ETFs in the U.S. However, it would support in-kind redemptions if given the regulatory approval to do so in the future.
“ETFs have been an effective means for broadening investor participation in crypto and further integrating digital and traditional finance capabilities,” Crypto.com President and COO Eric Anziani said in a separate statement. “We are tremendously excited to see this important step being taken in building towards all investors in the U.S. having the opportunity to engage with CRO through an ETF with Canary Capital.”
Cronos is an EVM-compatible blockchain developed by Crypto.com to power DeFi, NFTs, and web3 applications. Built on the Cosmos SDK, it enables low-cost transactions and cross-chain interoperability, with CRO used for fees, governance, and staking.
Canary has filed for a slew of crypto ETFs in recent weeks, including funds tied to Pengu, Sui, Hedera, and Litecoin, as well as an application for a spot Tron ETF, which also includes a staking element.
Last month, Trump Media signed a binding agreement with Crypto.com and asset management firm Yorkville America Digital to launch a series of ETFs, which are expected to comprise various digital assets and securities with a “Made in America” focus. In March, Cronos controversially approved a proposal to reissue 70 billion CRO ($6.9 billion) previously burned in 2021 amid Crypto.com’s plans for an ETF application.
Other asset managers, such as Bitwise, Grayscale, Franklin Templeton, and REX Shares, are also seeking the SEC’s green light for several spot crypto ETFs, including products focused on XRP, Solana, Dogecoin, Cardano, Avalanche, Hedera, Litecoin, and Polkadot. The flurry comes amid a new era for the agency under the pro-crypto Trump administration, with expectations that it will offer a friendlier ear than in the previous Biden era.
CRO is trading up around 6% on Friday following the news at $0.098, according to The Block’s Cronos price page.
CRO/USD price chart. Image: The Block/TradingView.
SEC says proof-of-stake staking activities do not constitute securities transactions
Canary Capital’s filing comes just a day after the SEC’s Division of Corporation Finance said staking activities on proof-of-stake networks do not constitute securities transactions.
“Accordingly, it is the Division’s view that participants in Protocol Staking Activities do not need to register with the Commission transactions under the Securities Act,” the statement said.
The division said its view applies to staking of “covered crypto assets” on proof-of-stake networks, activities of third-party service providers such as custodians and node operators, and ancillary services like self-custodial staking.
“Today’s statement provides welcome clarity for stakers and ‘staking-as-a-service’ providers in the United States,” SEC Commissioner Hester Peirce said in a statement, adding that “providing security is not a ‘security.'”
Jito Labs Chief Legal Officer Rebecca Rettig said the SEC’s announcement clears the way for crypto ETFs to include staking for the first time.
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